Baby steps – pick the smallest debt and work on that one.
This will accomplish two things:
- A feeling of success and progress
- Extra cash you now have to go after a bigger loan
Tween steps – you probably did not get here overnight so don’t expect an instant fix
- Cancel and cut up the card you just paid off
- Start small monthly transfers of extra cash into a savings account
- Look at all your debt to determine how long it will take to eliminate each loan
- Review your plan regularly and make adjustments
Teen strides – assess your lifestyle.
- Talk to others about your plan – get support and accountability
- Once you have some savings, you can call a creditor and ask them to reduce your debt, especially if it is old and has compounded interest. You will need to be able to pay them by a certain date. You may negotiate all of this.
- You may be able to save more by the way you spend. Do you need the latest and biggest and best of everything? Can you lower your insurance? Can you lower utilities?
- Consider a part time or temporary job to help make faster progress.
Grown – standing on your own two feet. – as long as you are in debt, somebody else is holding you up. Wouldn’t it be great to be able to stand on your own 2 feet? Think of the possibilities. Set some goals for the future:
- Save and pay for a trip before you go.
- Pay cash for a car you need
- Invest in an asset that will appreciate such as real estate
- Be in a position to help someone else, like a child or grandchild get an education
- Teach somebody else how to get out of debt
Leaping for joy – success
It is a great feeling to be able to say “I will be paying cash for that.” (No buyers remorse later.)