How to Finally Pay Off Your Debt, Even if You've Failed Miserably
A significant majority of people who are in debt have made at least one attempt to pay off their debts. Unfortunately, most people who try to get out of debt end up getting deeper in debt.
What causes this? Why do they end up accumulating more and more debt? The answer can be found in the methods that they use to try to get out of debt. Those people who use additional loans to get out of debt are only temporarily fixing the problem. Debt reduction loans might work for a while, but eventually the habits that caused the problem with debt in the first place will sabotage them.
The answer lies in correcting the underlying habits that create the problem of debt. The easiest way to do this is by using a debt repayment plan that won't allow you to indulge in those old habits.
What is a step by step plan that won't let you continue to indulge in your old habits?
The first step is to create a buffer between you and going into additional debt. When you're stretched really thin financially, even a small financial emergency can make you go back to using debt. What do I mean by a buffer? I mean a small amount of savings, somewhere between $500 and $1000, depending on your situation. It should be enough to fix your car if it breaks, pay the plumber if a pipe bursts, or pay the bills if your paycheck is late or too small.
The second step is to take on no new debt. This means no consolidation loans and no second mortgages. People who use second mortgages to consolidate and pay off their debt are replacing their unsecured debt with a loan secured by their home. The problem, then, is that if they can't keep up with payments on this new loan, they are at risk of losing their home.
The third step is to make a plan to pay off all your debts. Realize that the order in which you pay off your debts can make a huge difference. If you do it wrong, you're at risk of losing your motivation to get out of debt. Do it right, and you'll pay off your debts quickly while becoming more and more enthusiastic about getting out of debt.
The fourth step is to carry out your plan. The easiest way to do this is to automate your debt repayment plan. One way to accomplish this is to use an automatic bill payment service, such as the kind offered by most banks. Once set up, a bill payment service will keep you from incurring late fees. Most bill payment services are free, so this is awesome if you want to get out of debt.
The final step is to stick to your plan. After a while, you will have developed a little bit of momentum, and this will become easier. Once again, choosing the correct debt repayment plan can make a huge difference.
That's all you have to do. Now you can finally pay off your debts, even if you've failed every time you've tried. All it takes is the correct approach. - 23221
What causes this? Why do they end up accumulating more and more debt? The answer can be found in the methods that they use to try to get out of debt. Those people who use additional loans to get out of debt are only temporarily fixing the problem. Debt reduction loans might work for a while, but eventually the habits that caused the problem with debt in the first place will sabotage them.
The answer lies in correcting the underlying habits that create the problem of debt. The easiest way to do this is by using a debt repayment plan that won't allow you to indulge in those old habits.
What is a step by step plan that won't let you continue to indulge in your old habits?
The first step is to create a buffer between you and going into additional debt. When you're stretched really thin financially, even a small financial emergency can make you go back to using debt. What do I mean by a buffer? I mean a small amount of savings, somewhere between $500 and $1000, depending on your situation. It should be enough to fix your car if it breaks, pay the plumber if a pipe bursts, or pay the bills if your paycheck is late or too small.
The second step is to take on no new debt. This means no consolidation loans and no second mortgages. People who use second mortgages to consolidate and pay off their debt are replacing their unsecured debt with a loan secured by their home. The problem, then, is that if they can't keep up with payments on this new loan, they are at risk of losing their home.
The third step is to make a plan to pay off all your debts. Realize that the order in which you pay off your debts can make a huge difference. If you do it wrong, you're at risk of losing your motivation to get out of debt. Do it right, and you'll pay off your debts quickly while becoming more and more enthusiastic about getting out of debt.
The fourth step is to carry out your plan. The easiest way to do this is to automate your debt repayment plan. One way to accomplish this is to use an automatic bill payment service, such as the kind offered by most banks. Once set up, a bill payment service will keep you from incurring late fees. Most bill payment services are free, so this is awesome if you want to get out of debt.
The final step is to stick to your plan. After a while, you will have developed a little bit of momentum, and this will become easier. Once again, choosing the correct debt repayment plan can make a huge difference.
That's all you have to do. Now you can finally pay off your debts, even if you've failed every time you've tried. All it takes is the correct approach. - 23221
About the Author:
Sean Payne has helping people learn how to get out of debt for over a decade. To get more information about how to pay off debt, check out Sean's informative free course on debt reduction management.
posted by X - Men @ 2:53 AM
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