Living from paycheck to paycheck with the fear of bankruptcy looming over you because of debts and paying exorbitant interest rates is a fretful way to live. Many people are frantic because they feel hopeless in their debt situation. They keep hoping that someone, somewhere, can answer their prayers to “get me out of debt.”
There is little doubt that getting yourself out of debt will be a tough task that will take commitment, planning, sacrifice and perseverance. But always keep in mind that if you can reach your objective, it will be worth it. Just think about the freedom and relief you will feel without those large monthly payments and imagine how good it will feel to spend your hard earned money for what you want for a change.
The key tool you will use in any “get me out of debt” plan is the budget. This is what will help you stay on track while making sure all of the essentials are taken care of and that you keep all your commitments. Knowing where your money is going will assist you in plugging up the leaks and put you in control of your money.
In order to know how much to budget for each of your expenses, you will need to track your spending for at least a month. And don’t forget, the “get me out of debt” plan must also include budgeted amounts for infrequent and less regular expenses such as car maintenance, entertainment, savings, and gifts. You will have to estimate your monthly spending in these areas.
Your budget will tell you how much money is available to put toward your goal of getting out of debt for good. In addition to what you’re already paying, any extra money in your budget will also go toward paying down your debt. Tackle the smallest debts first, and once they are erased you’ll feel more inspired to pay off the bigger debts you face.
There will always be a little pain with your “get me out of debt” plan. You may have to forgo some of the luxuries that you were used to for a few months. But if you stay focused on the future, and on the freedom it will bring, sticking with your budget and giving up a few things now won’t bother you nearly so much. The reward at the end of the period of sacrifice will be well worth it.
The key to answering the get me out of debt problem is consistency. Once you get your budget established, do not vary from the program. If you’ve designed a proper budget, then you will know which bills to pay and when to pay them. You will know what you can buy and what is off limits. If you stick with it you’ll get out of debt quickly and finally feel some personal freedom.
Author: Adrian FletcherThis author has published 6 articles so far.