(ThyBlackMan.com) Just about everyone wants to be able to live without the nagging annoyance of debt lingering in the back of their mind. But for many, this can seem more like an impossible dream than something that can actually be accomplished within their lifetime.
Yet, when you know how to get debt-free, you start to see a light at the end of the tunnel. Instead of feeling suffocated by your debt, you begin to find joy in beating it back day by day. Let’s take look at how to get debt-free, regardless of where your current relationship with debt.
Hot to Get Debt Free
The first step in how to get debt-free is taking an honest assessment of yourself and your debts. No two people are exactly the same, and so it might not work to follow someone else’s script toward a debt-free lifestyle. While there are some general rules and services that make sense for people in certain situations, you need to do a self-evaluation before you can determine your course of action.
Before making any decisions, it’s important to do a few key things:
- Take time to fully understand how and why you’re currently struggling with debt. Much of it might be out of your control. It’s been well-documented that medical bills are considered the top reason for people having to file for bankruptcy. But there can be a lot of factors at play. Dissecting these causes can help you plan for a future where debt doesn’t control your life.
- Learn the difference between good and bad forms of debt. While some people will say all debt is bad, this isn’t necessarily the case for consumers who know how to use debt to their advantage. While racking up credit card debt on things you don’t need is certainly dangerous to your personal finances, utilizing low-interest debt to purchase a house can be massively beneficial. Being able to distinguish between positive and negative forms of debt will be key on your mission to getting debt-free.
- Compile your financial statements and start budgeting as soon as possible. No matter how you ultimately choose to get debt-free, budgeting needs to be at the heart of it. Without knowing how much money is coming and going from your accounts each month, it’s impossible to truly get a handle on your finances. Effective budgeting can also help you find any places where you actually might be overspending without realizing it.
Once you have laid your debt-free groundwork with these preliminary steps, you can start taking further action toward getting yourself out of debt for good. In an article at Bills.com, you can find an analysis of how people can make gradual progress in the direction of becoming debt-free by utilizing Dave Ramsey’s 7 Baby Steps method.
Again, it’s critical to note that these steps in this order might not be the right path for you. They’re just one plan created by someone who has found success in getting out of debt. At the same time, the idea of taking one step at a time—no matter where you’re starting from in beating your debt—is a powerful concept.
Furthermore, some people might be at a point where they can no longer get debt-free on their own. For those who have already made intense but unsuccessful efforts to get out of debt, it might be time to seek out more substantial forms of intervention. Speaking to a certified credit counselor can help you determine how to get debt-free when other methods haven’t been working for you.
Debt relief can provide a way to get debt-free for those who have run out of other options. While this shouldn’t be attempted unless you’ve exhausted other options, it can be a viable way for those inundated by debt to finally see the light of day.
No one deserves to be stuck in debt for their whole life. For those desperate to find out how to get debt-free, there is a solution for you. It’s just a matter of finding the right program to fit your needs.
Staff Writer; James P. Ford