Getting out of debt is probably one of the most universal goals found in the world of personal finance. If you really want to get out of debt, then you will need to dramatically shift your expectations. You cannot just assume that you’re going to be able to keep spending like nothing has changed. When you’re in debt, there’s usually a reason for that. We’re not saying this to shame you or make you feel miserable, but the reality is that you will need to ensure that you truly are thinking about everything involved when it comes to getting out of debt. It might make you feel isolated at the very beginning, but it’s going to be worth it in the long run when you are finally out of debt. You will have a whole new life ahead of you when you’re out of debt. It’s going to be easier to focus on what really matters in your life when you’re not drowning in debt.
First and foremost, you want to make sure that you have a proper outlet for your emotions. It goes without saying that debt is hard to deal with, and you might not have as many understanding friends as you would like. Usually when you’re trying to make a big change in your life, you will encounter a lot of opposition to it. Money is no different. Some people will you that you’re doing great and there’s nothing to worry about. However, do you really want to put yourself in that position? Not at all.
You just need to make sure that you’re focusing on the bigger picture, all things considered. You want to make absolutely sure that you figure out what’s going to help you get out of debt quickly. You can cut expenses in order to get there, but this is a path that’s going to be pretty painful for most folks. They’re going to want to make sure that they are thinking completely and totally on what they honestly wish to gain from the experience. It’s tempting to think that you can just slash your budget without feeling anything. However, most people will find that they really can’t handle a budget cut of that magnitude.
You are also going to have to realize that you have some tough decisions. Do you really want to file bankruptcy? Chances are good that you don’t. You might need to sit down with a qualified debt adviser that can tell, you what to expect. Maybe it means that you have someone work with your creditors on your behalf.
Sure, you could do this yourself but let’s face it — most of us are a little too nervous to actually talk to a business on their own. They don’t want to feel like they’re just going to be told no. If you feel like there’s nothing to be gained from playing by the rules, you’ll just shut down. Of course, nobody really wants to feel that way at all.
If you’re looking at the bigger picture, then it’s time to push forward into building a way out of debt. Don’t feel like you’re alone in this — there are plenty of people that are right there with you. They realize that the pain of cutting back today means that they will have a brighter future tomorrow.
Remember that you also want to take steps to ensure that you do not go back into the same debt that almost stole your future. Be sure that you are saving money in a savings account. Far too often we go into debt because we didn’t have any savings. It can be difficult to really get started saving but don’t let that stop you. Generally speaking you want to be able to save 20% every month. However, it’s perfectly okay if you aren’t there yet. You can always start with 5% rather than 20% if that would make things easier.
No matter what, believe in yourself. You can indeed do this. You can move on. You can gain something powerful from this new direction your life is going. Go for it and prosper!