Connect with us


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.
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
Click to comment

Leave a Reply

Your email address will not be published.

Recent Posts

Business3 days ago

Why Is Quantity Surveying Essential in Construction Industry

Quantity surveying is an essential part of the Australian construction industry. It is the process of calculating and estimating the...

Home Improvement5 days ago

How to Maintain Upholstered Furniture

No matter if you have pets or kids, maintaining your upholstered furniture is quite a challenge. Even though vacuuming it...

Business1 week ago

How Do I Find a Good Developer?

Finding a good bubble developer to help build your app or digital product can seem challenging. How can you choose...

Home Improvement2 weeks ago

When is a right time for home repairs?

Summer is a popular time for a renovation around the globe. While it is true that bright days and warm...

Top Alteryx Competitors Top Alteryx Competitors
Tech4 weeks ago

Top 15 Alteryx Competitors

The world has seen a tremendous rise in startups and new incorporations in the business world. Companies have great potential...

Lifestyle1 month ago

Latest Wedding Trends for 2023

If you’re planning on getting married this year, chances are you’re probably overwhelmed and confused when it comes to wedding...

Lifestyle1 month ago

Tips To Make The Most Of Your City Break In London!

London is one of the best cities in the world, known for its quintessentially British culture, great nightlife, fantastic museums...

General1 month ago

The Ultimate Guide To Packing For A Trip To London

London is one of the best cities in the world, known for it’s rich history, quintessentially British culture, the best...

Tech2 months ago

Top 15 Web Development IDEs

The web development field has seen sustainable growth throughout the years. As technology is advancing, so is the web development...

devops devops
Tech2 months ago

12 Key DevOps Programming Languages to Still Popular in 2022

“DevOps is not a goal, but a never-ending process of continual improvement.” – Jez Humble Delivering the finest of services...

Entertainment2 months ago

Festival Fashion Style Tips For 2022

Summer is well and truly here and with that comes the festival season! From the biggest stars performing on stage...

Green & Energy2 months ago

4 Tips For Making Your Wardrobe More Sustainable

Everyone is trying to make more of an effort to make their wardrobe more sustainable, but often are unsure where...

General3 months ago

7 tips on how to organize a budget-friendly move

If you are planning a move any time soon, you might be worried about all the expenses that wait for...

Metal Roof Colors Metal Roof Colors
Home Improvement3 months ago

Metal Roof Colors: How to Select the Best Color for a New Roof

Choosing the right type of material for your roof is enough of a hassle already that the question of choosing...

Health3 months ago

Simple Ways To Feel More Confident At The Gym

If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...