Millions of Americans suffer from it. No one wants to be in it. However, fact of the matter is more Americans are in debt than the number who are debt free. Being in debt can be a stressful experience and is no way to start off your new year.

No matter what happens in your life, if you signed on the dotted line for a loan or financial obligation, you are going to have to pay it back; regardless if you have a life altering experience like: losing a job, getting into an accident, getting divorced, dealing with medical expense, or even if you have increased expenses due to having a child. The best thing that you can do is make plans to be financially stable in case your circumstances change unexpectedly.

During the holidays a lot of people facing debt are guilty of an unintended consequence of too much holiday spending. Too many presents and too much Christmas giving often leave people in unstable financial situations going into the new year. So if you’re ready to put the Christmas cheer and overspending behind you and want to get on a path to financial freedom, it’s important to have a plan of attack.

Here’s are a few pointers on how to get yourself debt free:

Stop borrowing money.

This seems simple but what that means is that you have to stop using debt to fund your lifestyle. This means no more using credit cards, no more financing furniture, no more brand new cars or car leases that you can’t afford. By not adding to your debt it will allow you to focus solely on the debt that you have currently.

Create a budget.

Organize a spreadsheet on which you track all of your income, expenses, and debts. To pay off your debt, your income MUST exceed your expenses. If it does not, you will have to cut more expenses or work more to increase your income.

Look at your budget and figure out where you can cut expenses so you can have more money available to put towards paying off your current debts.
This can be difficult to do, but it is a necessary part of the process.

Track Your Spending and NO Unnecessary Purchases

A tactic that will help is to carefully track purchases and eliminate any careless “accidental” spending. Going to the mall? Consider first what you will be purchasing and write down what you need. Leave credit cards behind! Bring only the cash you need to spend and that’s it. Then keep track of your purchases and everything you got carefully.

Try to pay off your debts with the higher interest rates first.

Pay off your debts with the higher interest rates. Your debts with higher interest rates will always be unsecured debts like credit cards, payday loans, and unsecured personal loans. It is important to remember, the higher the interest rate, the faster these debts will grow. Pay off your highest interest debts first to minimize the total of what you will be paying off.

Spend Any Extra Money You Have… On Your Debt

In order to get yourself out of debt you will need to take any extra money you hadn’t factored in your budget and put it towards your debt. Examples of money you hadn’t factored in would include: a tax refund, selling a car or a possession, an inheritance, winning a pool or a bet…etc. The more money you can put towards your debt, the faster it will disappear and the sooner you will be debt free.

The debt you have doesn’t have to be forever, with a little discipline and hard work you can make it go away. Use the helpful ideas we have included, develop your financial game plan, and start your journey today towards being free of debt.

These are just a few of the steps that you can take to become debt free. There are organizations and resources available that can help you achieve your financial resolution. The debt relief experts at My AZ Lawyers are a great place to start. Contact us today to speak to a professional debt relief attorney in Mesa.

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