Have you ever tried to get out of debt but just didn’t know where to start? I think most anybody who’s attempted to get out of debt has experienced that feeling at some point.
You have decided you’re no longer comfortable with your debt load, and now it’s time to do something about it, but you’re just not sure what to do.
So how do you get started?
You can start by taking some small, easy steps to set yourself up for success. In this post I’ll show you the best small steps you can take right now to get you moving toward complete debt freedom!
Getting Out of Debt Isn’t Always Easy
Getting out of debt is not always an easy thing to do. Of course, it’s certainly not impossible either. Anyone can do it, as long as they decide that they’re going to follow through with the process, no matter what. My wife Angie and I fully committed to the process when we were getting out of debt, and it made all the difference. You can do it too!
Obviously, it’s going to take time, patience, and work, to achieve your goal of getting out of debt, but the results are 100% worth the effort!
5 Simple Steps to Start Getting Out of Debt Right Now
Prior to starting these 5 simple steps, You have to first make sure to get your mind and attitude moving in the right direction. You’ve gotta decide that you’re going to achieve your debt free goal no matter what.
I always tell the students in my get out of debt course that you have to get mad and naked (find out more about getting mad and naked here).
Once you become mad and naked, there are 5 simple steps you can do today to get started in your debt free journey:
1. Make a List of Your Debts- Write down every single debt you have, no matter how small it is. Don’t just make a mental list, put it down on paper where you can see it.
2. Write Down The Details- Beside each debt, write down how much each payment is, and how often you pay that payment (weekly, monthly, quarterly, etc.)
3. Get a Grand Total- Add up all the debt you have, and get a grand total of how much debt you owe. Next, add up all your monthly payments to figure out how much money you’re paying toward debt every month.
4. Make a Written Budget- Developing the habit of making a written monthly budget is one of the most important things you can do to gain complete control over your money and keep it. A consistent written monthly budget allows you to do 3 things:
- It frees up money you’ve been wasting because you haven’t been keeping proper track of your cash flow.
- A budget helps you understand the true problem. You’ll find out if you need to make more income, if you’re wasting a lot of money, or both.
- A budget gives a name and a purpose for every single dollar, so you don’t waste money and never spend more than you make.
5. Make a Get Out of Debt Plan- If you want to get out of debt, you have to have a plan. The first step in making a plan is to fill out a “Debt Rocket” plan (some people call it a debt snowball) that lays out show you the steps you need to get every debt paid off in a systematic way. You can download free Debt Rocket forms here. They include easy instructions on how to fill them out and details about how the Debt Rocket plan works.
If you want to learn more about how to start a budget, read this post on how to make a budget, and download the free budgeting forms you’ll find there.
Sometimes Change Doesn’t Come Easy
Getting out of debt isn’t always an easy trip, It takes commitment, patience, and time. But I’ve found that for most people, the hardest part is just getting the process started.
I can tell you from my own personal experience, taking that first step is usually kind of difficult, because it means you have to learn to change a few things in your life and develop some new habits.
Change doesn’t always come easy.
In fact, your mind, body, and spirit all tend to resist change.
You CAN Have Permanent Debt Freedom
But when you’ve finally decided to get mad and naked, and you’ve had enough of drowning in debt, making you feel worried and stressed, then you can start with these 5 simple steps that will bring lasting change to your financial life.
If you want to commit to getting out of debt and changing your finances for good, these 5 steps will get you started down the right path. If you’re looking for a deeper teaching, you can delve into that here.
Question: Have you ever wanted to get out of debt but never got started? What held you back?
Leave a comment and tell me about it.
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Love the breakdown!, The biggest step is the first one, just getting everything organized, together and written down to see what situation you are in. Years ago my wife and I got a car loan, I didn’t like the idea of having the debt, but I thought that having a car loan would help me build a credit score to make buying a house in the future easier. A few months later we realized how much we were paying to increase our “I love debt score” and paid off the 6 year loan in 18 months. Living without debt opens up a mot more options in life.
You are so right, living without debt gives you options that you just don’t have when you owe a lot of money.
That’s so awesome that you paid off the 6 year car loan in just 18 months! I bet you haven’t made that mistake again. We paid cash for our last two cars and there is no better feeling than writing one check (instead of one a month) and just being done with it.
In my opinion, you just don’t need a credit score if you want to succeed with money.