If you’ve made various attempts in trying to get out of debt but never been successful, it would be wise to take a closer look at what you have been doing wrong. You might be doing something wrong if you have been unable to settle your financial obligations. The first step to regaining financial freedom is to find the best way in managing your finances and making it right. Here are a few ways for you to check if there’s something you missed in your effort to regain control of your debts.
Get out of debt fast
By far the most common pitfall of all is spending beyond what you earn. This can be an easy trap to fall into if you have several credit cards at hand. Without realizing it, you charge way beyond what you can afford to pay. Top that with the credit card charges accruing interest and there is your nemesis. Try making a list of all the things you spend on each day and put that against what you earn per day. People lose track of how much their utility bills and other monthly payments total each month and when they are due. At the end of the month, every month you still manage to get surprised by how much your bills has totalled and the fine for not paying them on time. What you can do is sit down and get all those bills and everything else you pay on a monthly basis and get the total amount. Open a debit account, enrol your bills payment and deposit a little over that total on your payday before the first bill becomes due and do this diligently every month. This ensures that the bills literally take care of themselves.
What you want versus what you need. You want a new mobile phone, new clothes and a lot of other new stuff. This is perfectly fine, everybody wants something at some point, but do you need it now? Can you even afford it? If your phone is working fine and you just want that spanking new iPhone 6 because everyone else has it then your way of thinking is the reason why you are unable to get out of debt. When you are able to get out of debt and doing well with your finances then you can reward yourself with what you want even if you don’t really need it.
The best way to get out of debt is to take charge of your obligations, make a budget and stick to it.