Roughly 62.4% of Americans have credit card debt. That’s a pretty savage statistic, and chances are, you’re one of the millions who’s caught in a cycle of debt. If you need to pay off your debt once and for all, and get free of the financial stress and strain, then take heart!
There are several steps you can take for getting out of debt.
You’re not alone in this process, and if you take the right action, you don’t have to be one of the many who fail to get out of debt before they die. For you, your debt is a challenge you can tackle, and it starts right here.
Consult with a Financial Advisor
One of your first steps, as you work towards becoming debt free, will be to consult with a financial advisor. Since your own financial planning hasn’t exactly landed you in a field of daisies, you’ll probably need some outside insight. Plus, the deeper your debt, the more impossible a solution will seem. A financial advisor will help you understand what your debt situation is really like, and what you can do to finally get out of it.
They’ll help you understand practical steps you can take as you move towards becoming debt free.
They’ll also help you understand how serious the steps you need to take might be. You might be able to get out of debt with only minor life changes. You may, however, need to do something serious to get rid of your debt, and a financial advisor will help you face the truth.
Budget, Budget, Budget
If you work with a consistent budget, tracking your income, bills, and expenses, you should be able to live within your means going forward. The most important step you can take to avoid debt going forward is to start doing whatever it takes to live under budget.
Know how much money you’ll have coming in after taxes, and spend money on food, entertainment, and clothes only once you know how much you have to spend. Set aside approximate amounts each month to handle rent, utilities, and other bills, and start a few separate savings accounts, for car repairs, appliance repairs, and other sudden expenses.
Make a Lifestyle Change
You might find that, after you assess your financial situation and start to budget, you’re not in good financial shape. At all. You may need to move to a different neighborhood, smaller house, cheaper apartment, and start spending a lot less on food and eating out. Start working your mindset away from consumerism and more towards contentment, and do whatever it takes to change your lifestyle.
You can be happy and fulfilled with a lot less, and living outside your means is what got you into trouble in the first place. You may also need to consider making a career change to better pay off your debt. There are innovative academic programs you can take to increase your salary and start getting out of debt.