Have you ever stayed awake at night thinking about how your life would look like if you zero debt?
Well, getting out of debt is not an impossible task. There are countless examples of current-day millionaires who were once in debt. They pulled it off in style, so can you.
Here is the 5 step process to get out debt quickly and improve your finances today.
1. Stop using your credit card
The first step to quickly improve your finances today is to stop using your credit card. Particularly, if credit card debt is the main cause of your current financial nightmare. Credit card companies are clever and they will tempt you into spending more money(with offers and discount coupons). Mark the credit card company spam in your email list and resist all temptations to spend.
2. Create a budget
I learned the art of budgeting from the self-help guru and personal finance expert Brian Tracy himself. Brian believes in creating a plan or a budget before any major operation. It doesn’t matter whether you use a fancy budgeting app or write down things in a notebook, the old-school way. The minor details don’t matter. Create three columns: your income, fixed expenses, and recurring expenses. Fill these up monthly and keep an eye on the trends.
3. Focus on clearing your debts
The best way to get out of debt is to consolidate all the accounts into one single more manageable debt, known as Debt-Consolidation. This strategy works great of you owe money to multiple creditors.
Keeping track of the monthly payments of each creditor can be a daunting task. Particularly, when you are charged up with the emotions of resentment and fear. This is where a debt consolidation agency comes into play. And don’t worry, consolidating your debt won’t affect your credit score. You just have to stop borrowing more money.
4. Read personal finance material
Along with creating a solid plan and clearing your debt you also will have to understand how money works. To do that, read blogs like this one or read books from authors like Brian Tracy, Grand Cardone, Robert Kiyosaki, and Ramit Sethi.
Robert Kiyosaki, the author of “Rich Dad Poor Dad” was $1 million in debt when his first business failed. He and his wife Kim used all the knowledge they had acquired over the years to pay off the debt. He has shared all these tricks and tactics in his books and courses.
5. Try to improve your income
The best way to increase your income is by finding another source of income. Whether it is a second job or a side-business. Also, consider learning a new skill to help you get a promotion at your current job.
There is an online course for everything.
With the advent of eCommerce, plenty of new opportunities have opened up for entrepreneurs with a zero or low budget. Try your hand on things like affiliate marketing, blogging, freelancing, etc and add 20-30 percent more money to your existing income.
These are the most effective steps to get out of debt quickly. Almost all of the above-mentioned steps are low-risk. They are time-test to work in any given situation. You can try them out and comment below to let me know things went.