Wherever you are on your financial journey, making the choice to get out of debt is a game-changer, and these five tips from our partners at GreenPath are helpful first steps to getting out of debt.
Make your roadmap with a clear, specific goal that you can measure and see your progress. The first thing to do is to start. Decide what you want to accomplish in a very specific term. Start by asking yourself honest questions and making these important plans:
Get down to the nitty-gritty about how you will reach your goal. Use a budgeting worksheet to get started, or grab a calculator:
Optimize your budget for getting out of debt by reducing non-essential expenses. Things like home entertainment, meal planning, saving money on groceries, and reducing energy bills are good places to start.
Take a look at where you spend your money and set a milestone goal to learn new habits that get you the most bang for your buck. The more you can free up from non-essential living expenses, the more you can devote to getting out of debt faster. And, the faster you pay off debt, the more money you save in interest and fees. Figure out what your spending habits are, and how you might change them to get out of debt.
The simple act of imagining your future can help bring it about. Olympic athletes use this mental visualization technique to help them win. You can do it, too – for free – from your living room. Find a quiet spot, and imagine, in great detail, what it feels like to be debt-free. Use all your senses and emotions.
Building a vision board is a helpful way to give yourself a constant reminder of success. Gather items, sayings, photographs, whatever inspires you, that bring your debt-free future to life. Pin them up to the board and hang it in a place that you can see it every day.
The biggest, most important thing is to take action.
Depending on your situation, there may be options for you to get out of debt more quickly. If you are having trouble keeping up with your bills and debt is keeping you up at night, GreenPath can help.