Why not ring in the new year with a money makeover? Many people think that the first steps must be so drastic that it almost makes it undesirable to do. With these baby steps, living paycheck to paycheck will become something that you leave in 2018! Don’t let paying off debt become a mystery, by asking yourself realistic questions and being honest with your finances you’ll be well on your way towards a healthy financial relationship.
The overwhelming question that seems to stump most is, what is needed to get out of debt? Sometimes the answer to this question is more so WHO you need to get out of debt versus WHAT you need. Seeking help seems to be a distant solution for most, debt management or settlement is a viable option for anyone finding themselves in debt.
Debt management allows you to combine all of your debt into one affordable monthly payment. Other names for this program could be Debt Consolidation or Debt Settlement. Often times once you and your creditors agree to the terms of the program, your Debt Consolidation company will push to decrease interest rates or rid them in their entirety. Sometimes seeking help is the best option!
What if the underlying problem for your debt isn’t with the amount of money or income you bring in on a monthly basis? What if the problem is rooted more so in your budgeting, or spending habits? Most people assume that if they’re in debt, it’s because they aren’t making enough money which isn’t always the case. Although making an additional income can help most if not all debt scenarios, being realistic with yourself regarding your spending and mapping a financial gameplan can help you much better in the long run.
Some other baby steps to consider when conducting a financial makeover is to save up for an emergency fund, pay off your consumable debt, invest into your future and build wealth. Keep in mind that not all of this must be done at once but rather in phases. Overwhelming yourself with the idea of completing all these steps at once is never beneficial for anyone, but to consider completing this makeover over a period can change your financial relationship for the better.
Basic steps you can consider taking today can be committing to pay the minimum payment towards your debt. Although this may sound easier said, always remember that something is better than nothing when it comes to paying towards your debt. Another thing you can begin is listing all of your debts, starting with the smallest balance. This will help you keep organized and on track with your finances. All in all, debt might not be the easiest thing to get rid of but it isn’t the hardest also. Once you can begin to accept the idea that spending money is more so an emotional gratification rather than a rational thought it will be much easier for you to maintain financial freedom. Always be sure to review your daily routines and see if they coincide with your ultimate goal of being debt free. With income taxes making their way be sure to spend and delegate your funds wisely to reflect a healthier bank account in 2019!