Having a get-out-of-debt plan ain’t sexy but it can have a huge impact on your future. If you don’t already have a plan, the best time to get started is NOW. Instead of waiting until the New Year, start now and beat the crowd. Sure it’s tempting to think that it will be magically easier in January than it is now but that’s not always your best option. In the meantime, you continue to pile up debt which only makes your situation more difficult.
So start the year off right with a plan that you have already started to implement. I know it’s difficult with all of things you want to do and buy during the holidays but try to step back and put things in perspective. Once you have a plan in place, you know what you have available to spend without busting your budget and putting your future goals on hold.
And to help you get started my new book, Squeeze the Most Out of Your Money, has a whole chapter devoted to debt reduction, and for a limited time you can download my 7-step plan to formulate a get-out-of-debt plan for free when you sign up for my mailing list.
Briefly, my 7-step plan includes:
- Putting an end to charging because you can never hope to get out if you keep charging,
- Making a real commitment to do what it takes to get out of debt and this may entail some sacrifices at least in the short-term.
- Reviewing your spending plan to see how much you have available to put toward paying off your debt.
- Creating a detailed picture of your current situation. In other words, how much debt you owe and who you owe it to.
- Negotiating with your creditors. This doesn’t always work but when it does, it can save you a lot.
- Deciding on a debt payoff strategy. The two main strategies that I advocate are paying off the creditor with the highest interest rate or the one with the lowest balance first. The key is once you decide on a strategy to stick with it.
- Implement your plan, monitor your progress, and celebrate your successes.
Don’t forget, sign up for mailing list and download the Squeeze Your Money 7-Step Plan to get-out-of-debt for free then let me know how your plan is going. ps!