Despite what the advertisements on television tell you about being able to get rid of your debt for pennies on the dollar, there really is no magic formula for getting out of debt. Chances are that you didn’t get into debt overnight, and you’re not going to get out of it overnight either. The surest way to get out of debt is to pay as much as you can towards paying off the debt each and every month.
Getting out of debt requires a shift in mindset. You got into debt because you used your envisioned future earnings to pay for your wants right now. You’ve been living above your means, and now you’re going to have to learn to live below your means. Some people will try to rely on future pay raises, gifts, inheritances, or money magically appearing out of nowhere, but these plans are sure to fail. Instead, focus on controlling your spending and sending every last dollar you can towards the debt. If you have to, get another job or another two jobs to get extra income until you can pay off the debt.
The good thing about changing your life formula is that once you’ve paid off the debt, you’ll feel like you got a raise, because now you’ll have extra money left over at the end of each month which you had been using to pay down your debt. Don’t make the mistake of getting on the hedonic treadmill and blowing it all. Instead, use that money to save and invest and prepare for your future.
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