Getting out of debt can be a long and frustrating endeavor, but if you know how to get started, you will be fine. If you have friends or family in similar situations, or people in your life who know finance, reach out for help during your journey. You would be surprised at how many people are willing to help, but are hesitant to butt in. Many Americans today are in some form of debt, this is an unfortunate but true fact. But it doesn’t mean you can’t get yourself out of it. Read on for a few ways to get started.
The first thing you need for any journey is a set of goals. Be sure that you set reasonably attainable goals. If your end goal is to buy a house for example, don’t look at it as one big piece. Break your savings up into smaller pieces, and you’ll be much less stressed. The same goes for paying off debt. Look at what you owe overall, and then break it into smaller chunks.
The average household in America owns 13 different paying cards. In addition, 40% of American families are spending more than they earn. Take that and compare it to the fact that average American owes $11,244 in student loans, $70,322 on their mortgage, and $8,163 on auto loans, and it’s a recipe for disaster. Stop using your credit cards and simplify your life. It may be a hard adjustment at first, but it will allow you to start paying down debt without creating more.
There are so many options to pay off debt. Maybe you could sell an annuity, or sell structured settlements. A financial advisor can help you find options that are easy and right for you. If you aren’t sure where to begin, don’t hesitate to ask questions!
Will you be using any of these tips when paying off your debt? Do you have any other tips for paying off your debt fast? We would love to hear your thoughts and comments!