If wrongly handled, debt can become a lifelong burden that a debtor ends up taking to the grave. Actually, debt is worse than that because it actually doesn’t follow you to the grave. Instead, it sticks around after you’re gone, and haunts the loved ones you’ve left behind like a hideous ghost. Simply put, debt can be an inherited legacy that will keep your family in perpetual financial bondage.
Fortunately, no matter how deep you are in debt, it is still possible to escape it as long as you are properly motivated. And below are the ways you can stir yourself to get out of debt.
- Make the decision to actively stop accruing debt.
You can’t be in debt but carry on buying things and spending money that you can’t afford. If you truly intend on getting out of the hole that is debt, you need to stop digging yourself deeper into it and instead look up and start climbing out of the hole. There are certain things you just can’t afford to be doing anymore if you want to escape debt, and that includes using your credit card.
Overcome your spending urges, make the decision to get out of debt and stand by it. If necessary, you can speak to a debt counsellor.
- Create a realistic budget and stay with it.
Instead of spending more money, you should be looking towards ways to make more money or at least save money. To accomplish this, the first step is to create a budget that takes into consideration your income and helps you determine how much you need for upkeep and how much you can dedicate to paying creditors. If you manage to expand your income, you can have more money for you and more money to pay off creditors. All excess cash that you have no immediate need for should go towards getting out of debt.
- Prioritize your debts.
Prioritize your creditors by placing them in a hierarchy. Largest and urgent debts (especially debts with larger interest rate) should be placed at the top of your list and settled first.
With these three simple steps, you can motivate yourself to escape debt.
Taking a personal loan to pay off debt might initially seem like a good idea, but keep in mind that a loan is another debt which will eventually need to be settled. So do not consider a personal loan as an actual solution to debt. Instead, think of it as buying time until you are able to raise the finances necessary to settle all creditors.