How to Get out of Credit Card Debt?
Credit card debt is quite burdensome. Especially when you’re the type that can’t do without spending beyond your income. The best way out of debt is to learn from those, who’ve succeeded in getting out of it.
Before I conquered my debt, I used to suck at spending. Sometimes, I unconsciously spent my hard-earned income on trivial things that wouldn’t improve my life, career or family. But when I started applying these seven steps you’re going to read about in this article on how to get out of debt, I was able to eliminate my debts one after the other.
This article contains all you need to conquer your debt before it inspissates (gets thicker).
Seven simple steps that aids Paying off Debt
According to Dave Ramsey, “You must gain control over your money or the lack of it will forever control you.” These seven steps were developed after a series of self reflection and practice.”
Step 1: Block All Financial Loopholes
A person in debt is like a wounded patient. The first thing any doctor would recommend is to stop the bleeding. This helps you make the best use of what’s left of your income. You can do this by leading a cash-only lifestyle or opt in for a lower interest rate credit card, if your credit score is in good shape.
For instance, you can set apart $200 for groceries and gas weekly. Stick to that, and if you exhaust it before the weekend, then, you’ll have to cope for the remaining part of the week. But for those with faulty credit history, do consider a debt consolidation loan or a payoff plan with your credit card issuers.
Step 2: Subject Yourself to a Visualisation Therapy
How we see ourselves, is one of the core determinant of our reality. A visualisation therapy helps you develop a liberating view of yourself. It involves picturing a your debt-free life.
A lot of people overlook this step and that’s the source of their problem. Try to imagine the feelings, quality of living and achievable goals that comes with a debt-free life. The motivation that follows this procedure is quite appalling.
Step 3: Review Your Budget
Blocking the loop holes is one step ahead; having a clear view of your budget is another. This would help you attain your long-term financial goals.
You can conduct a total budget check up by tracking every dollar spent or gained. Making a thorough review of your budget is the best way to take control over your income. This would help you draft the amount you want to spend daily and the things you can afford to spend it on.
Step 4: Jump Off the Debt Ladder
The trick is quite easy. This method involves focusing your resources on the balance of the account that charges the highest interest rates. And simultaneously make the least payments on other accounts, while clearing the ones the biggest rates.
After eliminating the highest-interest balance, apply the same method on the next biggest one. Do this over and over again till you’re debt-free.
Step 5: Create a Repayment Snowball
This snowball method is quite popular. Here, the account you pay for is determined using the size of balances. This is done by adding more money to the account with the least balance and, immediately it’s settled, move the funds to the next one up.
The snowball method makes the accomplishment of a zero balance faster.
Step 6: Be Goal-Oriented
Having a goal in mind helps you avoid unnecessary expenses. Thereby helping you focus on clearing your debt.
This requires a lot of commitment and discipline. Do away with things that arouses you to spend beyond your income and save for your career/business goals.
Step 7: Try Credit Counselling
There are a lot of non-profit credit counselling agency out there. If you’re having difficulty coming up with a feasible plan, turn to one.
Reviewing people’s debt situation is what professional credit counsellors do. They’ll help you identify repayment chances and figure out the best method for you.
You can search the net to find a nearby non-profit counselling agencies in your environment.
Clearing your debt can be quite tasking. But with these seven steps, you can get your debt eliminated within weeks/months depending on how large it is.
Share your own experience in the comment box and share this post with your loved ones.
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