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Dig yourself out of debt

September 2, 2008

On Wednesday I wrote about an article I read that basically said some people could be in debt forever, that it’s their destiny.

I disagreed that someone is destined to be in debt and promised to detail some ways to end the debt cycle.

I should start out by saying that I know how easy it is to get into debt, and I know how hard it can be to dig yourself out. I accumulated debt when I was younger. I struggled along, falling farther behind and barely treading water for a big part of my 20s before I decided it was time to really take action.

It’s always easier said than done, but I’m telling you that I know it can be done.

After deciding that you want to get out of debt and creating a goal, a good second step is to go through a comprehensive credit counseling session with a reputable, non-profit agency. Agencies like Advantage CCS offer this service at no cost; though it’s priceless to have a professional sit down and evaluate your finances, help you to create a budget and offer practical suggestions to help you pay down your debt.

The next step is to quit using credit. If you enroll in a Debt Management Plan, you are not supposed to use credit cards except in an emergency situation with permission from your credit counseling agency. Even if you don’t choose to use a DMP to reduce your debt, you should still quit using credit cards.

Cutting up the plastic and cutting it out of your life is a real challenge. But, the only way to pay off your debt is to stop creating more debt. If you don’t have the cash for something, you don’t buy it. Even though it’s really hard in the beginning, it does get easier. And as you start seeing your balances go down each month (instead of up like you might be used to seeing) you feel a real sense of accomplishment. You know you’re doing something good for yourself.

I think those are the most major steps and changes to ending a cycle of debt. If you take a look at this blog you can find lots of posts about money saving tips. Some reductions may seem small at first, but the small things add up and do help you in the end.

Do you have any advice about ending the cycle of debt? What were some ways you changed your spending habits?

Written by admin · Filed Under Debt, Credit Counseling 

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