Getting out of debt requires your full attention. It takes will power, determination, and above all else, persistance. You have to create a budget and then stick to it. You have to prioritize your debts and eliminate unnecessary expenses wherever possible. Sacrifice will be necessary if you are truley determined to live a debt free life.
Making sacrifices does not come easy to most people. We work hard to earn a living and we want to enjoy the fruits of our labor. We reward ourselves with various items, such as a daily cup of coffee at Starbucks, a dinner out every Friday night, or perhaps going to the club on Saturday night. We buy ourselves items that we want but don't necessarily need. We buy on impulse without a second thought about how much it will really cost us in the end. If you are ever going to find debt relief, you first must stop going deeper into debt.
Sometimes we just can't avoid incurring new debt …
- The car breaks down
- The furnace stops working
- The roof needs replaced
- Your child is entering college
However, the majority of the time the new debt is completely avoidable ..
- You want that big screen TV
- You want that vacation in Hawaii
- You want that sleek new car
- You want that expensive piece of jewelry
It's not just the big ticket items that get us in trouble. All those seemingly insignificat purchases begin to add up fairly quickly. A new pair of shoes, a music CD or video, lunch with the gang at the local Bistro, even that tank of gas that you charged instead of paying cash for begins to increase your debt and reduce your actual buying power.
It's those seemingly insignificant purchases that you need to eliminate if you ever want to get ahead. You would be shocked to see how much money you actually throw away on those types of purchases. Don't believe me? Start keeping a weekly record of every dollar that you spend. List every purchase that you make, no matter how small. Put all of the receipts into a box and see for yourself just how much "extra money" you really have at your disposal for more important matters, such as getting out of debt.
If you are serious about getting out of debt, you must be vigilant and think debt relief all the time. Before you pull that VISA card out of your wallet, ask yourself, "Do I really NEED this item"? "Will buying this product save me money in the long run or is this just something I WANT, not something that I NEED"?
The same is true for cash purchases too. Before you buy that next pack of cigarettes or that next pair of shoes, ask yourself if you need it or just want it. Once you get into the habit of spending less and saving more, you will be on the right path to freedom from debt.