Understanding that debt can accumulate slowly helps you face the fact that getting out of debt is a slow process also. Yes it can be challenging. Yes it will most likely take time. But the rewards are worth all the effort and sacrifice.
Getting out of debt takes dedication and perseverance.
However, there are a few additional steps you can take to put your getting out of debt plan on firm ground and give yourself the best chance to succeed.
Lose The Cards
The first step to success is to get rid all your extra credit cards. Keep one for an emergency only, that is until you've built your emergency fund.
If you want to get serious about debt you need to remove all possible spending temptations.
As part of your plan you may want to consider doing a balance transfer of all your credit cards into one with a lower rate. This allows you to focus and know exactly how much money you'll need each month to cover your debt.
Another option may be the path of a consolidation loan from a bank for your debts, also with a lower interest rate and lower combined payments.
Pay With Cash
To keep your plan running and not grow any more debt start using cash for your purchases and only buy what you can really afford. The LCD TV is out. Start saving for it if you want it.
If you don't have the cash you most likely cannot afford it. A part of any debt plan will require some changes to lifestyle and cutting back on some things. Live with it!
There will always be another deal and another sale. Do not try and reason with yourself that a small purchase will get you off track ? it can. That's how you found yourself in debt to start with.
Stay focused! This is your chance to get yourself back on track financially.
Stay committed and focused on the plan of paying off the debts, knocking them off one at a time. I vote for paying off the lowest balance first to get some quick wins. Then attacking each debt in a row.
The best step to is sticking to the plan. Soon you'll have reversed the debt you built and can begin saving like crazy. Look at that LCD TV it is in reach and all paid for with cash.
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