How to get out of debt faster than you ever think possible

I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity under the name of funding, is but swinding futurity on a large scale"..... Thomas Jefferson

The average American househood with credit card carries more than $15,000 in credit card debt, according to Debt.org.

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Add to that &1.2 trillion (and growing) in student loan debt, sprinkled in car loans, and medical debt, and we've got ourselves an issues.

But in most cases those 15.000 thousand dollars was borrowed simply for consumption. A vacation, jewelry,or be shoes, and even for emergency funds for things you simply don't have the cash to cover. And all these are bad debts because it doesn't make you richer instead poorer.

But on the other hand is good debt, debt that puts money in your pocket each month. It makes you richer. It is used to purchase things like investing in real estate, growing your business, or take advantages of some usiness opportunities. It's used to purchase cash flowing assets. And the cash flow from the asset pays for the cost of the debt.

Unfortunately most people in America are saddled with bad debt and have no idea how to put good debt to work for them. And the reality is before you can put good debt to work for your advantage, you have to take care of bad and personal debt, you need more than a wishful thinking. All it takes is a plan and above all a right attitude.

More than a new year resolution

It's encouraging that Americans are committed to building up their finances, said Melissa Ridolfi; vice president of retirement and college products at fidelity investments. But "a small steps like making a resolution for the new year can go a long way in forming good money habits that can last a lifetime..... But it goes more than that. Because if 93% of Americans that make new year resolution where able to keep them, 350 million people would be thinner, healthier and have a savings.

But judging by the drive-through lines at McDonald's, a couple hundred million people lost their resolution at the first scent of a French fry. And you will found out that same those that couldn't steak out to their new year resolution may also found it difficult to payoff there debt. You will need a little more willpower to get it done. Because it won't be easy but it can pay off more better.

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Just like the process of getting rid of weight, only in reverse: where slimming down depends on steadily and persistently expanding more calories than you take in, successfully paying off debt involves taking in more money than you're obligated to send out.

But before will began dealing with the debt payoff strategies let's, look at those debt forming habits that brings us into those mess and how to break them.

i. YOU DON'T BUDGET OR KEEP TRACK OF YOUR MONEY

Money is only a tool it will take you were ever you wish, but it will not replace you as the driver..... Ayn Rand

You work too hard for your money, To wonder were it all went. Budget gives your money a direction. Infact a recent poll showed that only 32 percent of people actually have a budget, if you're not Budgeting you may not realize how much you are spending every month. Or what you are spending it on. And since will don't have to write a one thousand word letter, to get our hand on debt  can be quite easy to spend more than will earn on what we don't need; which we eventually lead us in debt.

How to break the habit: create a budget, sustract your monthly income minus your monthly expenses to equal zero. That doesn't mean you don't have any money left in your bank account instead you're just making sure everydollar in your paycheck is giving a job to do.

And not only that the trick is to make it balance, you may need to cut your bills (e.g, cancel cable, turn down the thermostat, downgrade your cell phone plan), cut expenses (stick to sales and pons at the grocery store, carpool to work, find free things to do for entertainment), or earn more money (take on extra shifts at work, get a part-time job, sell unwanted items) to strike a balance between what you earn and what you spend.

ii. YOU RATIONALIZE YOUR PURCHASE:

"I need this" or "I need to do this" work function, and I need these new shoes to look my best. All my friends are going on this trip, so I need to go. I don't have a lot of toys when I was a kid, so I need to give that to my child.

"I deserve this!" Lies we tell ourselves. We work hard for our money; we deserve a little treat, right? The answer is yes, but if you can afford it. If you're going into debt for an item, you shouldn't be getting it. It's simple.

Your ability to rationalize your own bad deeds makes you believe that the whole world is as amoral as you are"..... Douglas campland

This is common habit of people in debt. Rationalizing the unnecessary purchase they makes. And there are even several ways people can rationalize.

How to break the habit:

Making excuses for our less-than-ideal choices may be human, buts it's not the best way to manage, talking the time to really ask yourself why you're making the choices you are making can help to end your rationalizations and start looking at your finances more rationally.

Second, Don't make purchases right away before you buy something or plan a trip. really reflect on your current financial situation, by asking yourself, is this really a need? Or is it actually a want? Can I wait to buy this until I have the money for it instead of using credit?

ii. YOU ARE A IMPULSE SPENDER.

you see something you want it you buy it, sound familiar? With the swipe of a credit card.

Americans impulsively spend an average of $450 every month. And that adds up to an extra $5,400 spend every year, ouch! 

a click of a mouse, and even now a tap of the phone, we get what we want. If you're an impulse shoopers, this could be the habit that is causing you debt.

How to break the habit:  if you read through some of our previous post on Budgeting you will see that a great budget most contain a fun Money. Give yourself (and your spouse if you're married) a line item in the budget with your name on it for your fun spending. This is money you can spend how you want on what you want. And also consider opting out of emails from your favorite stores and deals sites that could create temptation to buy.

III. KEEPING UP WITH JONESES.

Our culture generally associate success and happiness with material things- like a big houses and abundances of money. When the truth remains that getting abundance of material things is not a sin. The question then is! How did you get it? Did it come from a credit card, or from a cash flow from am investment.

Unfortunately, people often feel pressure to "keep up with jonesses" and purchase items they can't afford to impresss- or simply feel like they're not being surpassed by- those around them. Buying things to maintain a certain image or lifestyle is unlikely to bring you fulfilment or happiness. In fact, if you can't afford it, it's more likely to cause you stress and anxiety as you fall deeper and deeper into debt.

You may even be trying to impress anyone- maybe you simply don't want to miss out. If you have friends that earn more money than you do, you may be tempted to go to the same restaurants, take the same price trips as they do. It doesn't Bother you or them. That you make less money than they do-but you want to do what they do, because you enjoy their company.

But if you are in a social circle where people are judging you on your income and the price of items you are buying it may be time to break away and find friends who aren't concerned with your money. Understand that it's not what you have, but it's what you do and how you live your life that makes a successful person.

Now that you have break-up all those habits that brings you into debt, let's go on examining strategies for eliminating those bad habit. And here we are to focus on creating more income.

Start earning more with the click of a mouse.The modern gig, or side-hustle, economy offers abundant opportunities to bank extra cash, everybody knows about Uber and there are of course, apps (internet sites) for that.

read: effects of debt on mental health

1. kangoapp:Kango allows users (who have passed the background checks) to earn by carting school-aged youngsters around and providing childcare.
   
2. gigwalk:Gigwalk quit you to small jobs that you can can accomplish in your spare time.
3. field agent: Field agent pays users to check prices and scan barcodes.
4. instacart: Instacart likes people who'd rather not go to the grocery with shoppers who pick up and deliver the goods.
5. Airbnb: Airbnb rent your house/apartment or merely a spare bedroom with Airbnb.
6. snagajob: Snagajob collect part-time opportunities in one place, with a simple search feature.

Buy apart from this there are other more lucrative part-time gig like.

• Blogging
• Droppshipping
• Selling educational products like ebook  audio book.

Now that you have began earning extra cash let face our behavior challenge.

1. Start couponing: you've  probably head this a thousand times but are doing it? You can save a ton of money just by showing a coupon to the cashier just be sure you're using coupon's for products you already buy, otherwise you could end-up overspending on items you'll never even use. That how you end up with 10 bottles of spicy mustard sitting in your pantry.

2. Be ready for struggle: saving sometime means sacrifices, and it's only natural to miss things like Netfix, going out for lunch or vacationing at a five star hotel. Prepare for thoses bucks of depression, have cheaper entering options like YouTube or even reading a good book ready, that which you can download for free from pdfdrive. Have a supports friend on standby to remind you how the sacrifices will not be worth it.

3. Construct a positive environment: interact with people who share your goals and avoid the temptation's that got you into a financial hole, a great start is to remove all your credit cards from your wallet or purse. If you don't have enough money in your checking account to buy it. Surround yourself with friends or even strangers who shares your goals. A good place for that debtors anonymous, where plenty of people are eager to turbocharged your willpower.

4. Stop investing: Yes, you read that right, and yes, we even mean stop contributing to your 401(k). Right now, you want all your income to go toward getting out of debt. Once you're debt-free and have saved three to six months of expenses in an emergency fund. Then you can resume your contributions, by then you'll be ready to start 15percent of your income toward retirement.

5. Manage your student loan:  burdened with student loans? Check with your human resources department. Increasingly, employers are bowing to reality: millennials, in particular, are more likely to take jobs that offer student-debt repayment assistance, more and more companies are investing in their workers by helping them pay off student loans.

Getting a lower interest on your student debt is a great first step, begin by comparing interest, markers of unsecured personal loans.

6. Negotiate interest rates: you may want to sit down for this, did you know some credit card interrest rates are negotiable? Yep. Contact your creditor's and ask about getting a reduced rate. This works best where you have been a long-term client with a history of timely payments.

Other ways to reduce interest rates including credit cards, that charge zero interest for tranferred balances (check the transfer fee and grace period), and personal consilidation loans.

It negotiation isn't one of your skills, consider contacting a nonprofit credit counseling agency, working with creditor's to get you better terms is right in their wheelhouse.

Use the extra money freed up from lower minimum payments (the result of lower interest rates) to reduce your debt balances.

Just remember, it all starts with a positive attitude. If you get your mind right your finances will follow.

Godfrey Kuma

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