Tag: Debt Plan
Get Out Of Debt Plan: Do You Have One In Place?
by guest on Mar.05, 2010, under Blog
Everyone wants a good “get out of debt plan”, well here’s how I did it…
Over the course of about 10 years, I racked up over $100,000 in debt - mostly on credit cards or loans I took out to pay off credit cards. So believe me when I tell you that I understand what it feels like to be buried under debt and looking for a plan to get out.
I spent hundreds of dollars and a great deal of time looking for the “perfect” plan to get out of debt. Particularly one that would help me do it as fast as possible.
Looking back, my expectations were unrealistic - I wanted a “magic button” that I could press and all my debt would be wiped away.
Unfortunately, the world doesn’t work that way. But in the process of looking for that quick fix, I did manage to learn enough to get myself out of debt a lot faster than I ever thought possible. It just took more work than I was hoping.
But don’t get me wrong - it’s a simple process, really. But that’s not to say it’s *easy* - you’ll need to put in some effort (but nothing that you can’t handle, I promise).
I’m going to give you the “10,000 foot view” of my system, and then I’ll let you know how you can learn more about it.
So let’s get started…
The system is basically made up of three steps.
1. Take Stock Of Your Finances
You need to figure out what you owe, to whom, and by when. This sounds simple, but it’s amazing how many people have a pile of debt and don’t really know exactly how much they have.
I suppose it’s partly due to the “ostrich” mentality - hide your head in the sand and hope it goes away. But the first step to getting out of debt is to determine exactly what you owe.
2. Determine What You Can Pay
The second step in the process is to figure out exactly how much you can pay toward your debt every month. Again, easier said than done.
Most people just work through the pile of bills from the top down, and pay what they can on each one. There’s no real plan in place, and they just go until the bank account is empty or even overdrawn.
You need to do a little work and figure out exactly what you can pay - and 99 out of 100 people find money they didn’t know they had as part of this step.
3. Create Your Plan and Stick With It
This is by far the most important component of the system. If you don’t create a plan and take action on it, nothing else matters. You’re just going to stay where you are today.
By laying out a specific plan of attack, you’re putting yourself in control of your debt instead of the other way around. And by sticking with it, even if it is tough sometimes, you’ll be sure to reach your goal of being debt free.
If you’d like to learn more about the 3 steps in this system, visit the Debt Reduction Academy website where you can learn more about how the process works.
