Getting out of debt is a big deal. It takes time and energy to get out of debt. The good news, it is possible. When you sit down to think about how you will get out of debt, you’re probably wondering what tools you will need. I wanted to outline at least 8 things you will need to help you get out of debt.
#1. A Plan
The most important thing you will need when you are trying to get out of debt is a plan. Don’t ever try to attempt to get out of debt without a plan of some sort.
#2. Extra Money
Another thing you will need when you get out of debt is extra money. Most people have a budget that is already tapped, which is why trying to make extra money is important.
#3. Lots of Patience
It’s always easy to wish for something, but it is much harder to get out there and work for something that you want. When trying to get out of debt, you will need lots of patience.
Whether it is communication with your spouse or with the debt you’re trying to ditch, communication is super important. You need communication to help your debt plan to come to fruition.
#5. An Emergency Fund
Getting out of debt is hard, no lie. So, don’t make it harder on yourself, get an emergency fund in place. This is a small amount of money that you lean on when you need it. For example, if you need new tires, you can use your emergency fund, instead of using a credit card or taking out a loan.
#6. Cash Only Mentality
Want to get out of debt? Stop taking on new debt. From here on out, you will need the cash only mentality. No more taking on debt to help you reach your financial goals. Cash is king and you need to make it happen.
#7. A Reward System for Yourself
Just because you’re getting out of debt, it doesn’t mean you cannot live a little. You can get out of debt faster if you reward yourself along the way.
#8. A Snowball
Most of you probably know what a snowball is, but some of you may not. A snowball is a list of debts you need to pay off listed from smallest -largest. You pay off the smallest first and then work your way to the highest.
Let’s Discuss: What tools have you used in the past to help you get out of debt?
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