Getting out of debt is key to your fulfilling your potential. Why? Owing money to another person is bondage. Bondage means you are not free. And if you are not free, you will be restricted from taking the required actions to live out your dreams.
Getting free of debt is neither easy nor fun. It requires sacrifice, persistence, and commitment. But anyone who has done what it takes to get out of debt will tell you that every tear shed and hour of sleep lost was worth the effort to have the freedom to reach for their goals.
Entire books are written about the subject, but to get out of debt requires three basic steps.
1. Stop overspending.
This seems like a “duh” statement, but the American materialistic mindset has many people deceived that buying this one more CD, this one more book, this one more cup of cappuccino, won’t matter. But all those “one more’s” add up quickly, sometimes even into the hundreds and thousands of dollars.
If you are serious about getting out of debt, you must discipline yourself not to buy anything more than what you need. Make “if I don’t already have it, I don’t really need it” your hourly mantra.
2. Pay with cash only.
Get rid of all but one credit card, and stash it away for emergency use only. If you are disciplined enough, you can use a debit card or check. But eliminating credit card use from your life will ensure that you don’t spend more than you have in your bank account.
3. Use every spare cent to pay down your debt.
When you stop overspending, you will have more money available to pay off your debt. Stop drinking your coffee at a coffeeshop and brew your own at home instead, and you will have up to $100 extra per month to pay off your principal. (Better yet, wean yourself off the java because it’s only taking years off your life, anyway.)
You might also consider creating a second income stream to help you to get rid of your credit card bills even faster. Many people have success with affiliate marketing, or earning commissions through promoting other people’s products online. To learn how to do this, grab your copy of Rosalind Gardner’s Super Affiliate Handbook.
Following these three steps will enable you to consistently, every month, pay off more and more of your debt. If you want to get out of debt quickly, get yourself an accountability partner, verbally commit to these steps, and get going!
