How to Pay Off Debt, Even if You Never Could Before
A large number of people who are currently in debt have tried at least once to pay off their debts. Many of them have tried several times. Unfortunately, most of them have failed, ending up even deeper in debt than before.
What's the reason for these people accumulating even more debt? The answer lies in the methods that they use to get out of debt. Those people who take on additional debt in a desperate attempt to pay off their debts are only putting a temporary patch on the hole in their "financial ship". Debt consolidation loans can appear to work for a while, but eventually the self-defeating habit of overspending will sabotage them.
The best answer to the problem is to correct the underlying habitual behaviors that create the problem of debt. The easiest way to accomplish this is to use a debt payoff plan that won't let you continue in your overspending ways.
What is a step by step plan that won't let you continue to indulge in your old habits?
The first step in a good debt repayment plan is to create a buffer between yourself and debt. When you're running low on money, even a little financial emergency can pressure you into going back to using debt. What's a buffer? It is a small amount of savings, around $500 to $100, depending on your own unique situation. This buffer should be enough to pay for an emergency car repair, a plumbing emergency, or get you through a week or two if your paycheck is late.
The second step is to incur no new debt. That means no debt consolidation loans, no second mortgages, or any other kind of loan. People who take out second mortgages in an effort to pay off credit card debt are substituting a secured loan for an unsecured debt. The problem with that it is that if you can't pay off your debt, you lose your house.
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 work your plan. The easiest way to accomplish this is to automate your plan for paying off debt. The best way to do this is to use an automatic bill payment service. Your bank probably offers this service. Once you set it up, an automatic bill payment service will keep you from incurring any late fees. This alone makes it worthwhile, but when you add in the fact that most bill payment services are free, this becomes a must-do if you're serious about getting out of debt.
The fifth step is to stick to your plan. Once you've developed a little bit of momentum, this should be easy. Once again, the right debt repayment plan makes a huge difference.
There you have it: You now know how to pay off debt even if you failed last time and every time before that. All it takes is the right approach. - 23217
What's the reason for these people accumulating even more debt? The answer lies in the methods that they use to get out of debt. Those people who take on additional debt in a desperate attempt to pay off their debts are only putting a temporary patch on the hole in their "financial ship". Debt consolidation loans can appear to work for a while, but eventually the self-defeating habit of overspending will sabotage them.
The best answer to the problem is to correct the underlying habitual behaviors that create the problem of debt. The easiest way to accomplish this is to use a debt payoff plan that won't let you continue in your overspending ways.
What is a step by step plan that won't let you continue to indulge in your old habits?
The first step in a good debt repayment plan is to create a buffer between yourself and debt. When you're running low on money, even a little financial emergency can pressure you into going back to using debt. What's a buffer? It is a small amount of savings, around $500 to $100, depending on your own unique situation. This buffer should be enough to pay for an emergency car repair, a plumbing emergency, or get you through a week or two if your paycheck is late.
The second step is to incur no new debt. That means no debt consolidation loans, no second mortgages, or any other kind of loan. People who take out second mortgages in an effort to pay off credit card debt are substituting a secured loan for an unsecured debt. The problem with that it is that if you can't pay off your debt, you lose your house.
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 work your plan. The easiest way to accomplish this is to automate your plan for paying off debt. The best way to do this is to use an automatic bill payment service. Your bank probably offers this service. Once you set it up, an automatic bill payment service will keep you from incurring any late fees. This alone makes it worthwhile, but when you add in the fact that most bill payment services are free, this becomes a must-do if you're serious about getting out of debt.
The fifth step is to stick to your plan. Once you've developed a little bit of momentum, this should be easy. Once again, the right debt repayment plan makes a huge difference.
There you have it: You now know how to pay off debt even if you failed last time and every time before that. All it takes is the right approach. - 23217
About the Author:
Sean Payne has helping others learn about personal finance and 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 @ 7:28 AM
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