Getting out of debt is never easy. You should never believe that you can have overnight success and be financially free. While it does happen from time to time, you should take into consideration that most people do not have the drive to do this. Have you ever met a wealthy or successful person? Have you noticed their attitude or mindset? They are determined, resourceful people. The road to success starts with thinking like someone successful, and you have to be stubborn if not deliberate about it. Make sure you have the drive, don't give up even for a moment. So for the moment, you need to set your goals, and first should be getting out of debt. Keep your focus, it's not fun or easy.
What are your spending habits like? Are you eating out frequently, are you buying impulse items, are you not bargain shopping? Are you using your credit card as a crutch? I want you to force yourself to sit down, write down exactly how much you spent on those, and bargain shopping is harder to judge, so start with eating out and impulse items. How much did you spend a week? The likely answer for most is too much.
Now, are you a smoker? Do you drink on a regular basis? Are you buying soda? How much did you spend last week on those? Right now on average, a smoker will spend $45 a week on cigarettes. That's a $180 a month you could have in your pocket!!! How much did you spend on the other items? Chances are, you're spending $200-$500 a month you don't need to.
Does your drive outweigh your need to smoke, drink, impulse buy? Would the satisfaction of getting out of debt be more useful to you than the temporary effects you'll face as the toxins leave your body? If the answer is no, stop reading. No one can GIVE you a road to success, you have to make it. If your answer is yes, continue reading.
I want you to get into the habit of scrutinizing all of your purchases. Did you really need that item? How could that money have been better spent? Actively think about it until it becomes second nature. Start cutting down your expenses and the money can go to what you owe in life.
My father is a successful businessman, and when I was younger, he would drill into me the concept of prioritizing bills. House, Food and basic utilities should ALWAYS be your first paid. If you can't afford it, don't try to do it anyways, you'll hurt yourself. Turn off that cable box, watch the free shows on the air. Oh yes, they're not as good as your premium movie channels, but they're...free. Goto a home improvement store and buy some weatherstripping. Place it in windows and doors. I'll write a guide on how to do that before long. Turn the air conditioning up a few degrees or your heater down a few degrees. Get into the habit of turning off all lights before bed time.
The difference between you and a financially successful person is their drive to do whatever is needed to save money at every corner. A little here and there might not sound like much but it adds up fast. A few improvements here and there can save you an extra $20-$30 a month in utilities.
Do you have credit cards? If not, this part is not for you.
Go through all your credit cards and figure out how much you're spending per month on finance charges. We're going to set priorities here. If you have a credit score of 650 or better, you'll have some bargaining power with your lending banks. Start calling them to see if you can have your interest rate reduced. If they refuse or you don't have any bargaining power, then another option would be to talk with a local credit union. Otherwise, rank each credit card by how much interest they're charging you, use the money that you'll be saving to get them paid off much much faster. Start with paying the minimum on all of the others except the highest interest rate/highest finance charge and pay them off as much as you feel you can.
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