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Dealing with debt is crushing. In fact, it can be so overwhelming that it's easy to feel like you're stuck in a hole with no way out. But there is hope! Managing and eliminating your debt isn't easy, but I promise it's possible—and once you get there, you'll never look back.
Break it down into small steps
If you're feeling overwhelmed by your debt and don't know where to start, it's important to break down the task into small steps.
Start with the smallest debt first. If you have more than one loan at a time, focus on paying off the smallest one first (the one with the highest interest rate). Once that is paid off, move onto the next-largest loan until all of your debts are gone!
Don't get discouraged if progress isn't immediate--it will take time and effort, but in time you'll find yourself moving forward on all fronts simultaneously: paying off old loans as well as saving money for future goals such as college or retirement.
Setbacks happen, move forward
Setbacks happen. You will have setbacks, and you will learn from them. You can't be perfect all the time, but that's okay! Setbacks are part of the journey; they're part of what makes you stronger as a person and gives you an opportunity to grow as an individual.
Setbacks aren't always about failing or making mistakes--they're also about learning how much more there is still left for us to do in order for us to reach our goals and dreams. Sometimes this means taking some time off from debt repayment so that we can focus on other things in life like getting married or having kids (which are both awesome things!). But if it gets too much where all these other priorities start taking over every aspect of our lives until paying off debt is no longer a priority at all...then maybe it's worth reconsidering whether those new priorities really matter enough compared with what matters most: being able to live comfortably without worrying about money!
Lower your interest rates if you can
If you can, ask your credit card company for a lower interest rate. If they don't give it to you, consider transferring your balance to a lower interest card or getting another credit card altogether.
If that's not an option and if you don't have any debt on any other cards (or if the amount of debt is so small that it doesn't make sense to transfer), then consider getting one--but only if the benefits outweigh the costs.
Reward yourself for making it happen
Now that you have a plan, it's time to reward yourself. Don't wait until the debt is gone--you deserve a little something-something right now!
A reward can be small or large, but it should be something that you enjoy and have been wanting for a while. Maybe it's buying those new shoes or going on vacation with your family. The key is not to make them things like "a new car" or "a house," because then they become materialistic goals instead of being able to enjoy life in other ways (which is what this whole process is about).
Get into the right frame of mind
The first thing you need to do is get into the right frame of mind. You need to be determined, disciplined and patient. You also have to be realistic and honest with yourself about your situation. This requires a lot of introspection and self-reflection on how you got here in the first place--and what steps you can take now towards getting out of debt (and staying out).
Managing and eliminating debt isn't easy, but it's possible
You may be overwhelmed by the size of your debt and discouraged by setbacks, but don't give up! It's possible to manage and eliminate debt. Here are some strategies for doing so:
Break down your goals into smaller steps. Instead of focusing on the total amount that needs to be paid off, focus on paying off one bill at a time or taking one step toward reaching a goal every day. This can help keep you motivated when things get tough.
Get organized before making any payments -- make sure you have all of the necessary documents ready in advance so that payment goes smoothly when it comes time to write out checks or swipe cards (or whatever method works best for you).
If you're looking for a way to get out of debt and make your dreams come true, it's important to remember that there are many different strategies for doing so. The most important thing is that you find one that works for you and stick with it until the job is done!
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