If you want to learn how to get out of debt, don’t worry, you can do it. Yes,
Getting out of debt isn’t impossible. Like any big goals, all that it takes is an action plan to identify where you are and create a plan to zero out your debt.
Identifying All of Your Debts
The first part of paying off your debt is getting a complete picture what you owe. When you have everything written out in front of you, it makes it much easier to create an action plan. Depending on how much you owe, it might also help you realize it’s not as bad you might have originally thought.
Here’s how you can get started identifying your debts:
1. Own Your Debt
Before you start identifying all of your debts, take a moment to process that you have debt but want to get out of debt.
Forgive yourself for any past mistakes, missed payments, or overspending. It might be painful to accept how much debt you have at first but you must own it.
How to Get Rid of Debt Forever
Setting up a plan, removing temptations, and getting the lowest interest rates is the first step to get out of debt.
1. Keep Monitoring and Adjusting
Once you have a plan, don’t get comfortable. Track your debt payoff plan and make the necessary adjustments when needed.
Monitor your credit scores with a free site like CreditKarma. The higher your credit score climbs, the more likely you will be to secure a new, lower-interest loan.
2. Earn More Money
There are only so many ways to save money. Instead of clipping another coupon or making sacrifices for your morning coffee, find ways to earn more money!
Think about it, it is much easier to find ways to earn an extra N5,000 per month than find N1,000 to cut from your budget.
Here are some examples of ways to earn more money:
Start a side hustle. This could be coaching students on the weekends or taking paid online surveys. There are tons of ways to make money outside your 9-5. Now that you have a clear plan to pay off your debts, you’ll be more motivated than ever to figure out creative new ways to earn money.
As you progress in your debt payoff journey, don’t forget to celebrate your wins. You need to always reward yourself for the hard work and discipline that is required to get out of debt.
While you shouldn’t celebrate so big that it increases debt, make sure to factor in little rewards to keep you motivated.
4. Set New Financial Goals
Eventually, with a plan and these steps, you can get out of debt. Once you do, make sure to celebrate your monumental achievement but don’t stop there.
Now, you can focus on acquiring wealth and increasing your net worth. Set new financial goals so you have a new target to aim toward. Here’s how to set financial goals and actually meet them.
These could be anything now that you are debt free! Think about where you want to travel, buying your first home or saving for your future retirement. Just like before, make sure that your goals are specific, measurable, and achievable.
Congrats, you can now set a plan in motion to finally get out of debt quickly (and hopefully forever)!
Remember if you want to get out of debt quickly, it’s not always easy. Just like any big goal, there will be sacrifices, challenges, and problems to overcome.