Ever entertained the idea of getting completely out of debt but never figured out how to get started? I think most anybody who’s in debt or has been in debt has entertained that idea at some point.
You realize you’re not comfortable with how much debt you have, and you realize that you need to do something about it, but then you become paralyzed. You just don’t know what steps you need to take to get started.
Do not worry. Here are 5 easy steps to come out of debt
1. Make a List.
Write down a list of every single debt you owe, no matter how small.
2. Find Out The Details.
Beside each debt, write down how much each payment is, and how often the payment is (weekly, monthly, quarterly, etc).
3. Add ‘em Up.
Add up all your debts to get a grand total of how much you owe. Then add up all your monthly payments to figure out how much you’re paying toward your debt every month.
4. Make a Plan.
You have to have a plan if you want to succeed in getting out of debt. The first step is to fill out a “Debt Rocket” plan that will show you the path you need to get all your debt paid off in a systematic way.
5. Make a Budget.
Learning the habit of making a monthly budget is one of the most important things you can ever do to get control of your money and keep control. A consistent monthly budget will do 3 things:
- It frees up money you didn’t know you had because you haven’t been keeping track effectively.
- A budget helps you figure out if you need to earn more, or if you’re just wasting a lot of money, or both.
- A budget gives a name and a place for every single dollar, so you don’t waste money and spend more than you make.
Change Doesn’t Always Come Easy
As I said before, getting out of debt is not always easy, It takes time, patience, and commitment. Usually the hardest part is just getting started.
I can tell you from personal experience, taking that first step is always tough because it means you have to change some things in your life and develop new habits. Change doesn’t always come easy.
In fact, our mind, body, and spirit all have a tendency to be resistant to change.
Permanent Debt Freedom
But when you finally get mad and naked, and decide you’ve had enough of all that debt dragging you down, making you feel stressed and worried, then you can proceed with these 5 simple steps and bring permanent change to your life.
If you’ve decided it’s time for you to be committed to getting out of debt and on a better path financially, these 5 steps will certainly get you started. You can also get a deeper teaching about how to do it by taking my CFF online get out of debt course.