Though the thought of getting out of debt can sometimes be daunting, it is definitely doable. Plenty of people have gotten out of debt. And you can, too. You can also get out of debt without a financial professional because it is very much possible to get out of debt yourself. Once you wipe out debt, the stress associated with it will finally disappear.
If you’re at the beginning of this debt reduction journey and feeling more than a little overwhelmed- that’s understandable. Finances can be a foreign language to many of us without a degree or professional background. Sometimes it may seem like they’re trying to confuse you just so you’ll bite and take the help that they’re offering… sometimes attached with an outrageous hidden fee.
But don’t let that stop your from taking the first step to getting out of debt yourself.
And guess what? The first step is one that you’re probably already doing. It begins simply, by taking control of your personal finances.
The first thing that you want to do is figure out how much you already owe. This could be something as simple as a sheet of paper that lists your credit card bills, monthly bills, etc. Make three columns and title them: total amount due, minimum monthly amount, and interest rate.
Once you have that all written down, add up the numbers in the total amount and minimum monthly amount columns. This is your total debt and the total minimum amount you have due for the month. Now that you have this visually, it’s somewhat easier to create a plan of attack.
Your second step will be to figure out how much money you have coming in and any money that you could easily come across but don’t include your retirement savings! And next, figure out your monthly expenses.
It all begins with being financially aware and by being financially responsible. You don’t need to have a degree in finances or even have a background in the financial field. Anyone can get out of debt and stay out of debt – and yes, they can do it by themselves. It’s just a matter of where to start.
And if some of that fancy terminology is tripping you up, check out the Financial Dictionary from Free Dictionary.
Latest posts by Kori (see all)
- 5 Ways to Encourage a Loving Relationship with a Special Needs Sibling - February 23, 2017