Getting out of debt is not easy. The first thing you can do is find out how you got into debt in the first place. Did you go crazy with credit cards? Did you budget properly? How was your credit doing? What are your current money habits? Where is your money being spent on? Once you determine where your money disappears to, the next step is to create a plan of action. Start making a list of all of your income sources along with expenses and make a budget. Cut everything you can afford to, and for luxuries, get rid of them. It will be uncomfortable at first, but it’s necessary in order to get out of debt as fast as possible.
Start setting aside a bit of money for yourself for peace of mind. Everyone needs a safety net in case of emergencies. Determine which debts to pay off first. You can choose to pay off the smallest debts first in order to gain the momentum to keep yourself in the saving money mindset, or you can pay off the highest interest debts to reduce the time you’ll be spending on paying interest and bills. Buy used whenever you can, and buy generic instead of brand names. Any expense that can be removed by working a little bit extra, remove it. Some examples are eating out at a restaurant or having a maid, with a little work, you can save money instead.
If you want to get out of debt, you have to change your way of thinking. Don’t buy unless you can afford to pay cash for it. Credit cards are purely for emergencies, which should already be covered with your savings. Be happy with what you have, instead of what you don’t have. Keep following your budget, and when you’re done paying off your debts, put that extra money into savings instead. If you have more than enough to be satisfied, start using that money to invest into your retirement savings account. Whatever you do, don’t fall into past money habits and overspend on everything with money you don’t have.