How to Get Out of Debt for Good
So, you want to get out of debt, and for good this time. It is possible if you make good choices. Follow these tips to get you on your way to financial freedom.
Create a Budget (and Stick to It)
Take the time to create a budget for a realistic look at your financial picture. Record your income and expenses over at least a month to get a good idea of what comes in and what goes out.
Track every single penny you spend. That means the morning coffee you stopped for even if you paid for it with change you scrounged for on the floorboards of your car. Go back through bank statements and credit card bills for occasional and annual bills that you might not have paid this month. Make sure they go into the budget.
Be honest about your actual income. Use take-home amounts unless your deduction are way off base. If you get a refund at tax filing time, use it to pay down any extra debts.
Look Into Balance Transfers
While credit card spending may have helped get you into debt, it might also be able to help get you out. If any of your cards are offering low promotional rates, consider moving balances there to minimize accumulating interest. Cut up the old cards so you aren’t tempted to use them.
Seek Outside Help When Necessary
You don’t have to struggle with mounting debt alone. Sometimes it becomes necessary to get some help in order to get out of debt. There are professionals, like those at Rescue One Financial, who specialize in helping people resolve their debt issues.
Just like it took you time to accumulate your debt, it will also take time for you to get out of it. be patient and follow your plans to pay down your obligations and regain your financial independence.