Christmas is over and the crunch of the credit card statements is about to start. Don’t let your debt crush you this year, take control and
Crush your debt.
- Make a statement. It is one thing to think about doing something, it is another to actually say it out loud. If you want to really get serious, make a statement on paper. Put it somewhere you will see it everyday as a reminder! It could be something as simple as… ” To become debt free I will ________”.
- Figure out which debt to pay first. All too often people are tempted to start with the biggest debt (usually the scariest). This is not always the best course of action. Sometimes the best course of action is starting with the smallest. A small victory brings feelings of joy and pride, those feelings make you want to continue that journey. Now that being said you might want to pay the big one first if the interest is killing you. Try using a debt calculator to see what order will save you the most interest and have you out of debt first. Click here to see my personal favorite debt snowball calculator.
Predict your next big expenses.
Why the heck would you do that to pay down debt? What happened the last time you were getting ahead? BOOM! A big expenditure! Planning ahead for those big bills will help you budget for them instead of adding them to your debt pile. It is much nicer to have the $1000 insurance payment in the bank than adding it to a line of credit or credit card.
- Set Goals (How cliché I know) At the risk of sounds like some cheesy commercial, yes I said it, set goals. Why you ask? Because it is proven to work. Put it right beside that statement I told you to write in #1. Having a goal to pay down debt makes it real. (I also recommend doing this for saving) Let me take you back to kindergarten for a minute… remember the sticker chart? I don’t know about you but most people remember the sticker chart and how excited they were to get to put their sicker up. Make yourself a grown up sticker chart and STICK IT to debt! Be sure to Ask Yourself These 5 Questions when setting goals!
- Create CASH. Don’t do anything illegal here. I’m not saying you need to start trying to print money in your basement but look for ways to create cash. Whether you sell unwanted items around the house or pick up a part time job, take that extra cash and dump it on debt. If you put an extra $50/month and put it down on a debt of $20,000 (@7% interest – current payment $200) you will SAVE $3000 in interest and have it paid off 3 years sooner! $50 is less than a tank of gas for most people!
Are you ready to CRUSH your DEBT in 2018?
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Crushing your debt won’t only be good for your personal finances but it will also create a sense of pride and confidence around money. If you have always struggled with personal finances please reach out to me for a free consultation. Money doesn’t have to be hard. Sometimes you just need a little support to get you back on your feet.