No one likes a lingerer, just like James Franco in Pineapple Express! So why do so many people let debt linger in their lives? It is holding you back! Ditch it in 2018 and change your life. Below is a list of action items you should follow if you are serious about crushing debt in 2018.
*This is not a debate on if you should finance a car to go buy stocks or real estate article. This is a I am sick of sending off payments every time I get a paycheck article. To avoid this classic finance argument lets assume this debt is everything other then low interest rate mortgages (under 4%).
1.) Earn More Money
No shit Sherlock! I know it is a tough one to read on an internet list but it is the truth. When paying off debt you need all the firing power you can get. That is why no matter how much you plan on making this year, make more! That is right just because your boss set your salary doesn’t mean that is the only money you can make. Most of my readers are from North America and this is 2017 soon to be 2018 stop making excuses. Whatever amount you make you can do better, find ways to make more and apply it to your debt.
2.) Pay Off High Interest Debt First
Math is important, and it controls finance. A high interest rate will keep you in debt longer then you need to be. List out all debts on a sheet of paper, get the interest rates in front of you. No matter the size of the debt your most hated enemy is the highest rate! Find the highest rate and debt and pay it off. Then move down the list and crush the next one.
3.) Get Angry At Your Debt
To many people make debt a normal part of life. If it is not bothering you then you would have already stopped reading. Get mad that you work hard to make someone else rich and then send your paychecks off to someone who is loaning you money! You are on the wrong end of the deal get fired up and get rid of it.
4.) Set A Goal
Goals are very UNDERATED. Goals have tremendous power write down what you plan to accomplish and how long it will take you to get there. Do the math and write down a number that you will need to pay towards your loans each month. Don’t come home until you have that amount in your bank or pocket to make the payment, hustle!
5.) Learn To sacrifice
Stop acting entitled and learn a lesson in humility along your way to debt freedom. You do not need the latest of whatever it is you have your eye on. Skip the item of the year and instead position yourself for a better future.
6.) Announce What You Are Doing To Friends And Family
Our closest friends and family have the biggest impact over our actions. Who wants to make mom disappointed or feel embarrassed in front of your best friends. It won’t be easy but you have to let these people know your goals. Let friends know you can’t go out this weekend because you are paying off debt. Or tell your parents you can’t fly home. Just let them know why you are doing what you are doing. They will most likely be more supportive of your efforts then you think!
7.) Set A Reward For Big Milestones
Realize that there is an end in sight. You are doing this for a reason. I recommend setting a goal to reward yourself at the end of the journey. Use your new cash flow to pay for a trip or get something you delayed purchasing while paying off the debt. If your debt level is large set mini rewards don’t burn yourself out but stick with it!
You are not alone in this journey many people carry debt at some point in their lives. Focus on why you are paying off your debt. No matter your situation I promise it will get better if you stick with a plan and follow through. Good luck to all those on your debt payoff journey!
What Are Your Thoughts?
- What would you recommend to someone trying to get out of debt?
- Share your debt story.
- Why did you get into debt in the first place?