3 Strategies to Escape Debt
Featured Image courtesy of Power Finance Loans
As an adult, you are bombarded with more ways to spend your money than the money you actually have. Even worse, you are encouraged to spend money you have not even earned yet by going into debt! The pressure in society today to have more, be more, and do more is excessive. In order to not only survive but to thrive, you must make hard financial choices that will protect your family and your future. Here are three strategies to escape debt that will make a difference in your life today.
Cut The Credit Cards
Purchasing things on credit is a recipe for financial disaster. The little benefits that card companies offer are carrots tricking you into doing what they want, just like a horse race. Cutting up the cards, paying them off, and abstaining from the use of credit gives hope to your financial future. Otherwise, you will always be paying off what you already have, paying for your past.
Use the Debt Snowball
List out all of your debt from smallest to largest. This is called the Debt Snowball plan. You will begin to pay off the smallest debt and work your way up through the largest one. All the while, you are to maintain the minimum payments on all your bills. If you have IRS debt, put it first in line as the last thing you need is the IRS on your back.
Get a Second Job
Picking up a second job or starting a side business will help you get the extra money you need to plow through your debt snowball. You will visually be able to see the progress as your debt reduces. Debt is like chains of slavery. You will take off one link of the chain with each payment you make until all your chains are gone. The freedom that paying off your debt brings is priceless and worth the effort you will put into it. Knowing that your second job is only temporary will give you strength to work through times when you are exhausted.
Facing your debt is not a fun process, but it is beneficial for you and your family. List out everything you owe and see the hurdles you must tackle. Do not get overwhelmed by the massive number. You will cut down debt like a forest, one tree at a time. Through these strategies, you will be able to escape debt’s hold on you. You will learn to live in your financial present instead of remaining chained to your past financial decisions.
