Creating A Plan To Pay Off Your Debt

Creating A Plan To Pay Off Your Debt

While it may have taken you just one wild shopping spree to get into debt, you won’t get rid of your debt overnight. But if you can create a plan to manage your debt and stick to it, you will one day live a debt-free life.

Here are 6 things you need to do in order to begin to pay off your debt.

Be Realistic

Paying off your debt takes time. Be patient, as progress is slow. Treat your debt like a video game. Every positive step you take should get your debt to decrease and your credit score to increase.

Be Persistent

Always keep your goals in mind. Attack your debt with power. The goal is to destroy it. Just keep your eyes on the prize and eliminate those debts one by one, little by little. Do not give up.

Take Responsibility

Don’t pass the buck. It is not the fault of anyone else. You might have been young, in a tough financial situation or were tricked or convinced into making bad deals. Yet you were still the one who made these irresponsible choices.

If you do not take full responsibility for these debts then it makes it more difficult to pay them off. You won’t have the motivation to pay off a debt if you blame someone else for it.

Separate Needs vs Wants

Determine what is or isn’t a necessity. This is the only way to control your spending. If you don’t control it you will just get back in debt all over again.

If you want to get out of debt, eliminate some expenses that are considered luxuries. This includes those $4 lattes, the $40 restaurant trips and yes even your $90 cable bill. It’s going to hurt, but the goal here is to eradicate your debt.

Create A Budget

Create a monthly budget by listing your earnings and your expenses. Sounds simple enough. But in your budget, make sure to make room in this budget for the repayment of your old loans and outstanding debts.

A regular budget has all the usual items like food, rent and utilities. But a really good budget also includes money going to your savings account, money going to pay back your debt and money going to ‘miscellaneous’.

Don’t Be Discouraged

It is possible to live a debt free life. No matter how much debt you have, there’s a way out. Think of your debt is a big giant rock. Right now you’ve got a small pick and you’re striking this huge boulder.

At first, you’re barely scratching the surface. But later, as you make more progress, you will begin to chip off larger and larger portions of the rock. Before you know it, this rock, which represents your debt, is now a pebble you will pulverize with one more strike.

About The Author

Edwin is a marketer, social media influencer and head writer here at Stack The Chips. He manages a large network of high quality finance blogs and social media accounts. You can connect with him via email here.


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9 Comments

  1. Debbie Adams

    “This really helped me a lot, especially since I have debts to pay. It’s hard for me to set my priorities. I wish you could make more posts and articles like this in the future. Thanks an best regards!

  2. Hunter

    Great post! Very succinct, and concise. I think it basically comes down to being realistic, knowing your income, spending less, and really asking yourself if you really need something or want it. Get real, get out of debt, look to the future. Thanks, Hunter.

  3. Dennis Amber

    “It’s hard for me to budget money and I also have debts to pay. I am thankful for this site because it made me clear up my head. Now I have a guide on doing what I have to do. Thank you so much!

  4. Lebron Chambers

    “Time for me to plan. This gave me a really good “push”. I hope you can make another great article like this. Thanks!

  5. Clarisse Kline

    “I agree to all what is stated above. Most of my friends have less income but still they managed to pay debts. It’s also a matter of discipline.

  6. John Wayne

    “If you’re not sure of what you’re getting into, might as well not take the risk. Same thing goes for being in debt. We have to compromise and make the best out of what we already have and be contented.

  7. Casey Down

    “I admire the way this article has been written, striking shall I say. This is a very good advice. I can tell this information to all my friends who are in debt.

  8. Auto Loan After Bankruptcy

    It is also important that once a credit card is paid off, you should strongly consider keeping that card open. Credit cards are a big part of you credit history, if you close an account, especially an older one, you are loosing the score boost that line of credit gives you. If you are unable to be responsible with credit you should close credit accounts but start with the newest ones first.

  9. Doable Finance

    Spend less than you make should be the basic mantra of your finances.

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