close
Advertisement
Shop Now
Magazine
 

Steps to Get Out of Debt

Follow this advice to break the habit of overspending once and for all.

Debt
iStock

Getting into deep debt causes more problems than just financial troubles. The effect on your mental health and relationships can be devastating. Follow this advice to break the habit of overspending once and for all.

Can I undo the damage?
Yes, but it’s not easy. The process of getting out of debt takes time, it can be hard on your ego and your lifestyle, you must be constantly vigilant and it’s easy to revert to old habits. But for those who succeed – and many do – the results are stunning.

Your repair plan
Learn about money management. You can’t master your money if you don’t understand the rules and methods of personal finance. Find a straight­forward book or website and learn all you can about credit cards, budgeting and investing.

Put your credit cards on ice
Literally. Put them in a cup, add water and place it in the back of the freezer so you can’t use them for any impetuous purchases.

Create a budget
How much money is coming in each month? How much are you spending on essentials and how much on frivolous purchases? Then, follow these guidelines to help control your debt.

  • Pay more than the minimum due each month on bills.
  • Pay more than the minimum on your highest-interest credit card. After you pay that off, move to the one with the next highest interest.
  • Automate good money habits. Have your wages paid directly into your account and bills paid automatically from it. Also have small amounts automatically diverted to savings accounts.
  • Find an incentive to cut unnecessary spending: set a goal and post a photo of it where you will see it often.


More in Money

6 Money Hacks That Will Save You a Fortune on Your Next Grocery Bill

6 Money Hacks That Will Save You a Fortune on Your Next Grocery Bill

Here's how you can cut your food costs, reduce your waste and improve your eating habits.
Secrets of Self-Made Millionaires

Secrets of Self-Made Millionaires

They're just like you - but with lots of money. Read their inspiring stories here.
Online Shopping Scams and How to Avoid Them

Online Shopping Scams and How to Avoid Them

With Christmas shopping looming, now is the time to wise up to the tricks of online scammers.
8 Revealing Everyday Documents You Never Knew You Should Shred

8 Revealing Everyday Documents You Never Knew You Should Shred

Once trash is off your property, it’s legal for anyone to take. Prevent identity theft by making sure these documents aren’t tossed in one piece.
7 Things You Should Do ASAP If Your Wallet Is Lost or Stolen

7 Things You Should Do ASAP If Your Wallet Is Lost or Stolen

Don't panic just yet – you can avoid identity theft by taking the right steps.
Advertisement