When you’re in debt, you feel like you’re in hell. In debt-hell.
There is only one trusted way of getting out of hell and that is with great intensity and focus. You have to be willing to live like no one else so you later, you can live like no one else.
Living Debt-Free is a lot easier than you think.
How To Get Out Of Debt-Hell
The first step is to stop incurring more debt. Quit borrowing money. Cut your credit card (s). Cancel your line of credit, sell your house if you have too! Take an oath and quit borrowing money. There’s no such thing as good debt! As of right now, quit borrowing money. Forever! I’m not a very religious man but I love reading Proverbs 22:7
No such thing as good debt.
The second step is to live on a tight financial budget. You can use a spreadsheet program like Excel or use a piece of paper and a pen. It doesn’t matter. A budget is simply you telling your money where to go instead of asking where it went at the end of each and every month.
Reduce your monthly expenses to the bare minimum.
Your main expenses are food, shelter, utilities and transportation. Everything else should be cut. And that includes eating at expensive restaurants, cutting your entertainment packages (Internet, Cable Television, Satellite TV, Netflix etc.) Cell phone plan, gym memberships etc. Every dollar saved is a dollar towards paying off your debts. In this step, organize your debts by lowest amount to highest and attack the first debt voraciously.
This is know as the Debt Snowball Method.
“The rich rule over the poor, and the borrower is slave to the lender.”
The third step is to raise your income. If it possible for you to work overtime at your current job then do it. You can also find a higher/better paying job or find a 2nd or 3rd part-time job. For example, you can deliver pizzas or working in a call centre during nights and weekends (after your main job) The best would be to combine all of these options to you can generate a lot of income and attack your debt. You can also start an online business but it might take a few months or years to actually see a profit.
And the fourth and final step, getting your mindset right. If you don’t believe that debt is dumb, that you need super intensity to get out of your situation then you’ll be in debt forever. In fact, this step should be number one. However, if I wrote it first then people would have skipped my answer because people love to read about action-steps without actually doing anything about it.
You need to put all of you attention and focus on getting out of debt.
That means, temporary eliminating all other goals that you may have. (In essence, multitasking can be negative but that’s another subject for another day.) There’s a great article by James Clear explaining this on his website called Warren Buffett’s “2 List” Strategy: How to Maximize Your Focus and Master Your Priorities
“A good plan violently executed now is better than a perfect plan executed next week.” — George S. Patton
To summarize, to clear off your debts. Have the correct mindset (intensity), have a plan (budget) and violently execute it. (work like a madman)
I hope this helps!