The Secret to Getting Out of Debt and Staying Out

by News Guy on April 21, 2012

Millions of people around the world deal with debt on a monthly basis. For many consumers, their debt problem continues to grow out of control to the point where they have no idea how to get back out again. If you find yourself in this situation, you can choose to keep accumulating debt and barely getting by or you can choose to claw your way out. There’s nothing easy about getting out of debt, but there are some strategies that you can use to help yourself along the way.

The Most Important Factor

While there are many different plans and strategies that you could use to get out of debt, there is one quality that you’ll need more than anything else. Without this quality, you will most likely continue to struggle until your debt grows to a point that is even bigger than it is now.

Persistence is perhaps the most important factor when you’re ready to get out of debt.

A lot of people start down the road to being debt free but few ever actually get there. They may make an extra payment on a credit card one month and then see the latest and greatest toy at the store the next month. Instead of staying strong, they relapse and buy the toy with the new space that they made on their credit card account. If you truly want to become debt-free, you’ll have to have a great deal of persistence and make it a priority to stick with your plan. There are many paths that you can follow, but persistence is the fuel that will get you there.

Debt Tends to Hang Around

Debt is one of those things that always seems to hang around longer than it is welcome. You may think that if you just keep doing what you’re doing, the debt will eventually take care of itself and find its way to the door. However, in reality, the debt usually just stays or gets worse. Numerous studies have shown that people with debt tend to grow their debt over time instead of paying it off. This means that it takes a conscious decision to go against the grain if you want to get out of debt. You have to change habits, which can be very hard to break.

Adjusting Your Lifestyle

When you decide that you want to get out of debt, you’ll most likely have to change part of your lifestyle. In some cases, these changes can be drastic. You’re probably used to living at a certain standard and changing that standard may be hard. For example, you might be used to going out to lunch every day at work. You like going out with your friends to your favorite restaurant and you really don’t want to change it. However, this habit contributes to your debt by giving you less money each month. You then have to finance certain things with your credit card to keep up your standard of living. You will need to look at each one of your expenses to see if they are entirely necessary. An easy way to reduce your expenses is to compare online auto insurance quotes from top insurance companies at Kanetix.ca. By comparing quotes online, you could save hundreds of dollars on your insurance. Anything that is not necessary should be cut out so that you have more money to apply to your debt.

For instance, you may need to change your cable subscription from premium to basic. In fact, consider cutting out cable completely. Most of the shows you watch are available for free online anyway. Think about getting rid of that monthly movie subscription. Move to a place with cheaper rent or pick up a roommate. There are hundreds of different things that you can do to lower your bills. If you can implement some of these changes, it will give you more money every month to apply toward your debt. Keep in mind that the changes don’t have to be permanent. You can always pick up some of the things you gave up after your debt is gone.

Making it Happen

Once you have made these lifestyle changes, you also have to make a conscious effort to apply the extra money to your debt. Sometimes, when you have extra money every month, you’ll be tempted to spend it and buy things that you don’t need again. Not only do you have to make a conscious decision to do it, you have to do that every single month. This is where the persistence really comes into play. You must do this every month for multiple years in many cases, if you want to get rid of your debt problem.

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This guest post was written by a contributing writer at Kanetix.ca. Visit Kanetix today to compare insurance quotes from the top insurance companies in Canada. Save time and money.

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{ 1 comment… read it below or add one }

dkrycek December 6, 2012 at 12:42 pm

Thank you for this article! One of the things that really helps is spending the money for car insurance. If you are already in debt and you get in an uninsured accident, it will only make things much worse!

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