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

Home Improvement3 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...

Lifestyle3 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...

Entrepreneur3 months ago

Unveiling the Demand for Digital Marketing Courses: A Comprehensive Analysis

In recent years, the realm of marketing has undergone a seismic shift propelled by the digital revolution. As businesses increasingly...

Home Improvement3 months ago

What Does an Effective Wardrobe Spring Clean Entail?

Spring is upon us which means one thing and one thing only. It is time for the annual purge of...

Business5 months ago

Your Basic Guide To Creating A Unique Investment Blog

Starting your own blog is great and once you get the ball rolling, it can be a good passive income...

Business5 months ago

3 Low-Risk Ways To Get Your New Business Started

Once you’ve got an initial business idea and believe that it will be a success, there are some basic things...

Lifestyle5 months ago

Conquering the Co-free Zone: Tips for Thriving as a Remote Worker

Adjusting to an office environment can come with its downfalls in the sense that it might be a shock to...

General6 months ago

3 Ways To Take Control Of Your Finances Starting Now

If your finances have taken over and are bringing stress to your life, we understand just how overwhelming it can...

Travel8 months ago

Best Places To Visit In The North Of England

If you live in England, you will know there are many different places to visit for the weekend. There are...

General8 months ago

Green Home Improvement Ideas

In a world where environmental concerns are growing, the concept of “green” has gone beyond a trendy catchphrase and is...

Lifestyle8 months ago

How to Host an Unforgettable House-Warming!

The time has finally come. You have moved into your dream pad, and are officially adulting in your very own...

Autos8 months ago

A Guide to Parking Lot Striping

The journey to a well-striped parking lot begins with the right paint. In this brief guide, we’ll unravel the mystery...

Business11 months ago

Business Tips For Protecting Your Finances During A Recession

In 2023, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Lifestyle12 months ago

Tips For Cleaning Your Trainers

If you’re into your trainers and streetwear, you’re likely to be very conscious of keeping them looking their best! So,...

Marketing1 year ago

Branding Trends For Start-Ups in 2023

Branding is incredibly important as it impacts how your business reaches and connects with its target market. If you’re branding...

Categories

Archives

Trending