How I Got Myself Out Of Debt


As someone who was recently in debt, I can tell you that it was no fun. Having debt is like carrying around a weight with you at all times, and when you finally get rid of it, it is a huge relief. I know there are many people out there who are also struggling with debt, and I would like to help you out as best I can. Below are the steps that I used to get myself out of debt. Hopefully you will be able to apply them to your own life, and get yourself out of debt sooner rather than later.

Step 1: Relax – The first thing you need to do is simply relax. Yes, having debt is a burden, but with the right planning, everyone can get themselves out of debt eventually. But if you stress over it, it will only make your life more miserable, and it won’t help you pay back your debts. So relax.

Step 2: Start Planning – Now you can actually begin the process. Planning ahead is essential to paying back debt, especially if you have several different loans out. Get out a piece of paper and write down all of the different debts that you have. Rank them from the ones with the highest interest rates, to the lowest. Also write down next to them what the minimum payment is you need to make on the loan each month. On another piece of paper, write down how much you have to spend on paying back loans each month.

Step 3: Allocate Funds – With your debt written out in front of you, it is time to start figuring out what to spend. Add up all of the minimum payments you have to make each month and subtract it from the allocated money you have on the other piece of paper. If you don’t have enough, you are going to need to adjust your budget to give yourself more funds. If you have left over money, apply it to the loans at the top of the list. These were the loans with the highest interest rates, so you want to pay them back as quickly as you can. Making payments that are larger than the minimum will help you to pay off the loan much faster, and save you money in the long run.

Step 4: Look At Other Options – There are many options out there for helping people with debt. First, you should talk to your lender and see if there is anyway to lower the interest rate or adjust the monthly payments. If that doesn’t work, you can look into a consolidation loan. With this type of loan, you are essentially combining several smaller loans into one large loan, making it easier to pay off. You can also apply this strategy to credit cards, by using a credit card with a lower interest rate to pay off one with a high interest rate. Explore what options are out there for you, and see which ones will work best for your situation.

Step 5: Stick To Your Plan – Once you have a solid plan in place – knowing what you are going to pay towards your debts each month, or any other options you took advantage of – make sure you stick to it. A debt reduction plan falls apart if you don’t stick with it. You need to make your debt a priority, and not just something you pay back when you feel like it. I know that other things come up all of the time, but there will always be an excuse to not pay as much as you can on your debt. Try to avoid these excuses, and make paying your debt back the top priority. Once it is all gone, you will be very happy that you did.


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