It can be incredibly overwhelming to look at your debt and say “how am I ever going to do this?”
Well debt solutions don’t come easily, but they do come.
First off all think not of the total amount of work it takes, but the work divided by a reasonable time frame. For example, if you just spend 15 minutes a day working towards your debt resolution, you would be better off than most of us right now.
If you follow what most time management experts tell us to do, and break everything up into achievable tasks, you would be well on the road to success.
Don’t be scared, don’t be depressed, and don’t give up. Dig into it and learn something!
MAKE A LIST
If you are not the list-making type, then this might sound like a waste of time to you. If you are the list-making type, odds are you make too many lists and just can’t get through them all. Both extremes are bad. Find balance by having just one list at a time: In this case, your debt solutions list.
The reason you do this is because most of us just cannot calculate the math necessary for debt solutions in our head. Having it all on paper will bring to the conscious mind, and make it ready for resolution.
CATEGORIZE
Start making some logical categories on a spreadsheet or within the list. You can create categories based on interest and time accrued. I like to do both.
PRIORITIZE
You should prioritize based on several different variables. One is the lowest amount. The smallest debt can be paid off first in order to give you a quick psychological boost, this is not the most mathematically sound way to approach it- but it is motivating, which has to count for something.
Another way to prioritize is by order of highest interest rate. This makes a lot more sense b/c the interest rate is what is killing your ability to pay off right now.
Yet another, less often talked about technique is just paying off the debt that makes you feel sick to your stomach. That could include alimony, or the “water bed” you rented to own which burst after two days with no return policy.
EXAMINATION
This is the stage where you step back and say…is this possible? With my current budget, can I even do this? And if the answer is no, then think about ways to save. And if you still can’t do that- then you may have to look into debt settlement, debt management, or other measures such as bankruptcy.
THE FUTURE IS ALL WE HAVE
And it should be brighter than the present. Focus on the end goal, what you want things to look like 2 years from now. Manifest and you shall achieve.
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