The bills are piling up and your phone is constantly buzzing with calls from creditors. You have not slept a wink in the last weeks as the thought of getting deeper and deeper into debt only overwhelms you.
Being in debt is a nerve-wracking experience. It robs you of peace and financial security. The good news, though, is no matter how big your money woes are, you can certainly make your way to freedom from debts. Experts from UtahMoneyCenter.com share these debt-defying acts that will let you crawl out of that debt hole.
Make a List of All Your Debts, Balances and Interest Rates
This seems to be the most obvious step to take and you’re probably thinking about skipping this part altogether, but before you do just that, hear the rationale behind this very important step. You have to list all your debts so that you will gain a better understanding of what you’re dealing with. This first debt-defying strategy urges you to get to know your enemy. Get a piece of paper or go to your mobile memo and make a list of all your debts and the respective lenders you owe. Write the interest rates and the minimum payments for each account, too.
Establish Periodic, Realistic Goals
Getting out of debt is not easy, but goals will help you create achievable action steps, which will lead to freedom from financial problems. When you write down a goal, make sure to evaluate the amount of many you can spare for debt repayment each month. Then, determine how long it will take you to get out of it.
Prioritize Paying Debts with the Highest Interest Rates
Lay out a plan to pay off all your debts. Most people start with balances that have low interest rates—a financial move that isn’t so wise. Start paying off the debts with high interest rates. This will allow you to save the most money in interest over time. Remember the mantra: be consistent, be diligent.
Sell What You Can Sell
Look at your stuff and see if there are things that you don’t need anymore and can be put up for sale. You’ll be surprised at the many items you really don’t need. The consolation here is, when you’re finally debt-free, you will have the money to purchase and add stuff.
Take control of the financial mess you’re in with these debt-defying acts. Once you’ve finally gotten yourself out of that debt hole, don’t risk jumping into it again. Ever.