The #1 Way to Get Out of Debt – it’s more than just paying debt!
Debt is one of those things that creep up on you. It doesn’t accumulate overnight but it feels like one day all of a sudden when you add all of it up – it’s much more than you realized!
What could you do if you were debt free? Stop and really think about that for just a minute. Close your eyes and think about if all of the money you made actually stayed in your account? Of course necessities like food, clothing and utilities are a given but above that, how much would you keep if you had zero debt?
Last week we talked about a debt snowball. Debt snowballs are awesome and that’s what my husband and I used to accelerate paying off our debt.
But the number one way to becoming debt free is to not take on more debt.
Having an emergency fund will help you to not take on more debt. The lack of an emergency fund will cause you to have to choose between not paying your electric bill or paying for the emergency. You nor I are fond of living without electricity, so you’re forced to take out that credit card and pay for that emergency. Using a credit card for anything is creating more debt.
Also having a written budget that you can truly live by will help as well. Budgeting in money for vacation, Christmas, filling that propane tank or paying those once a year property or vehicle taxes will keep you from having to borrow money or use a credit card.
When you do pay off a loan – don’t take that money and stick it in your pocket! Assign it to something in the budget, build up that emergency fund with it or start your debt snowball using that as the extra to pay on your other debt!
Schedule a complimentary consultation here today to get you started budgeting, building an emergency fund and getting out of debt!