Connect with us

Finance

Dig Your Way Out Of Debt In 3 Steps

Damaged credit, bank account all but depleted, credit and tax debt.  Any of this sound like you?
If you are struggling with any of these issues, know you aren’t alone.

There are many people out there going through the same thing, struggling to get their financial lives back in order.
Here are a few steps you can take to begin this process and get back on your feet.
Budget
The most important thing is to budget your spending from here on out.  This will help your bank account grow and your debts decrease.
Know how much you need each month to survive.
Remember spending categories like rent/mortgage, utilities (including phone, internet, TV, power, water), car payments and insurance, gas, groceries, medical, savings, and set a miscellaneous section to cover anything else.
You can do it all in a notebook with each page dedicated to each “account,” or even go old fashioned with labeled envelopes to physically separate the allocations you’ve made.
Each paycheck you get, sit down with your book and dedicate a specific amount of that check to each account.
It should be the same each week or pay period.  Any time you spend money, write it in the corresponding account and deduct it.
The idea is that your budget book will follow your bank account, but in a more controlled way so you can see where you are spending.
Get help
There are many agencies out there to help in situations just like this. Monitor your credit monthly and know your credit score.
Debt management programs can be a big help to increasing your credit scores.
They can set up payment plans to pay all the debt off, or they can negotiate to settle some unpaid debt, depending on your situation.
There are also programs and agencies out there for tax debt relief for settling unpaid taxes.  There is plenty of help out there; you just need to look for it.
Set your goal
There is a saying, “Discipline is deciding between what I want now and what I want.”
Set your end goal, what you want to accomplish, and write it down and post it where you can see it each day.  This will give you renewed drive each day to stick to your plan.
Use the S.M.A.R.T. goal system to help determine your goals.  “S” for Specific.  Don’t make some general “I want to have more money” goal.
Name something real to be working towards. “M” for Measurable.  You need to be able to see the end in sight.
Tracking savings per week or month for example, can help measure the success of your working towards the goal.  “A” for Attainable.
Make sure your goal is something you can reach.  “R” for Realistic.  If you are $100,000 in credit card debt, being debt free in 12 months is not realistic.
See what can be done and aspire to do it, but don’t set something so hard that it’s just impossible to reach.  “T” for timely.  This is your deadline.
Take into account how much debt you have and what your income currently is when determining your deadline.
You CAN become debt free
Intentions mean nothing without action.  Now that you know, you have to also “do”.  Following these steps will help bring some control where you have felt helpless.
Whatever your financial situation, you are now empowered to live your life without the weight of debt.

Featured images:

License: Creative Commons
image source
Sean Carter is an experienced writer who has covered the topics of debt, finance and ecnomics for a wide variety of blogs

Continue Reading

Recent Posts

Business3 days ago

The Invisible Hands: Unveiling How Food Distributors Influence the Quality of Our Foods

Ever found yourself wondering why the tomatoes in your salad taste particularly fresh or why your preferred brand of coffee...

Marketing3 days ago

Webflow CMS: A Comprehensive Guide

Webflow is a powerful tool that allows you to create and manage dynamic websites without needing to code. It’s a...

Business3 days ago

The Three Most Important Benefits You Should Offer To Your Employees

Offering your employees a range of benefits on top of regular salary increases will really help to show that you...

Business3 weeks ago

Business Tips For Protecting Your Finances During A Recession

In 2024, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Green & Energy1 month ago

Air Conditioning Installation: What You Need to Know

When it comes to getting an air conditioning unit installed, can significantly improve your comfort and home environment, especially during...

Marketing1 month ago

Marketing Tips For A Gym Wear Brand

When starting a gym wear brand, there are a few things you need to do and one of them is...

General2 months ago

Social Media Marketing: What Are All The Types?

Social media marketing is a tool that is a must-have in today’s digital age. it’s very rare that businesses can...

Business2 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Business2 months ago

Remote Delivery Innovations: Case Studies from Leading E-commerce Brands

People have gone through much change in the past few years when it comes to online shopping. Nowadays, when delivery...

Business3 months ago

Why are Brits turning to online-only banks?

For years, large, conventional banks held all the aces when it comes to citizens’ finances in the UK. HSBC, Lloyds...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech3 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

SEO4 months ago

The Importance of Local SEO for Small Businesses

There are many different types of businesses and all of them will require online marketing however, with a small business,...

General4 months ago

Understanding The Unsung Heroes: Cool Rooms And The Importance Of Regular Repairs

Everybody loves a breath of fresh air when entering a superstore! But have you ever wondered who’s working backstage to...

Home Improvement7 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Lifestyle7 months ago

What is a Deep Plane Facelift

Cosmetic surgery is a choice that needs a lot of research and when it comes to thinking about a facelift...

Categories

Archives

Trending