27 May 5 Steps To Better Debt Management At Any Age
It doesn’t matter what age you are, debt doesn’t discriminate. It doesn’t care if you just graduated from college and are having a hard time finding the job of your dreams. It has no concern whether you just had a baby and can’t afford to pay the medical bills.
It just doesn’t care what life event you may be going through it’s always going to try to intervene.
Debt is ugly and it can be painful, but it can also be managed. Here are a few simple steps to follow to help you get a handle on your debt.
Assess Your Debt
Firstly, you’re going to want to find out just how much debt you’re working with. Make a list of your credit cards, loan accounts, and anywhere else you might have debt hiding.
While this can be depressing to lay all of your debt out in front of you, it can also be a major step toward getting it paid off.
Take the list that you’ve made and decide which amount you’re going to be paying off first. There are many ways of tackling debt, you can do a quick Google search and find out which method suits you and your families needs.
Whichever you choose be sure to stick to it.
Create An Emergency Fund
When you think of an emergency fund, you probably think of a years worth of your income or some other outrageous figure, but it doesn’t have to be this crazy.
It can be something small such as $1000 in a savings account, 3 months of income, or even a couple of bills put together in case you get behind. Keep it manageable; it’s better to have something than nothing at all.
Emergency funds can mean the difference of staying above your debt or sinking back below it. All it takes is one tiny event and you’re back under.
Having the emergency money to take care of situations that arise will help you stay on track and ultimately pay off your debt sooner.
Stop Spending More Than You Can Afford
It’s important that when paying off your current debt you aren’t going out and accumulating more of it. If you want to reach your goals you have to stick to them. There are many things you can do to stop spending so much.
Try starting with a budget.
The three major categories that people spend the most money on are clothes, food, and alcohol. Try cutting back on your weekend shopping trips for a while.
On Friday nights, instead of dining out, try staying in and having a home cooked meal with your family.
Also, purchasing your own alcohol and drinking at home with friends can help to cut out the bar scene and over-priced drinks.
Start Paying Off Current Debt
The next step of the process is the most painful one. This is where you part with your hard earned dollars to tackle the debt once and for all. It doesn’t have to be difficult though, try making a game out of it.
It’s the little victories in paying off debt that keep us going. They push us to want to get through it and they help to take the sting away.
For every bill that you pay off, treat your family to a nice a meal or treat yourself to something small that you’ve been wanting.
Remember not to go crazy though, you don’t want to lose control.
Some folks have more debt than others, that’s a fact of life. While it may only take one person a few months to pay off their debt, it may take another a few years.
It’s all about perseverance and the will to keep on pushing. Knowing that you have a system in place can keep you motivated and help you succeed.
Think about how happy you’ll be when you no longer have to worry about creditors calling and hassling you, or when your hard earned paychecks aren’t being split to 20 different bills. It’ll be glorious!
You have to do the work to get the outcome though. Just tell yourself to keep moving forward and let nothing stop you.
Serious Debt Solutions
There are many options out there for paying off your debt. Figuring out which one can be pretty difficult.
Here at Bolinkse Law, we understand how painful debt can be.
We can help determine what the best course of action would be for you to take to get out from under your debt and start living a happier life.