Debt sucks, it’s obvious. It stops us from buying new cars and keeps us living in our parent’s basements, but it doesn’t have to last forever. It takes some work, but getting out of debt isn’t brutally hard.
Step 1: Find out what you're paying in interest on your debt. If your debt is all on your credit cards, you'll be paying the interest forever before you start paying off what you originally owe. Try applying for a consolidation loan from a bank since the interest rate is lower, or if you're a student, look into what kind of bursaries you can get at financial aid on campus. It’s surprisingly easy to get cash back from the school when you’re poor.
Step 2: Organize yourself. Sort your bills, plan what you need for the next month, and figure out where your money is going. Start off by listing everything that you buy in a month on a list, and include the money that you use to go out with. Go through and highlight everything that you absolutely have to spend money on, like rent, groceries, and drug addictions. Once done, sort your list into two columns, one for what you need and one for what you don't.
Step 3: Stop spending. Stop buying the stuff you don’t need. It’s pretty easy; just don’t buy useless things. If you’re spending a lot of money on stuff you collect, choose what you prefer- living with your parents forever or giving up comic books. If you can’t decide, give your lists to your friends. They should have no problem cutting you down for your geeky addictions.
Step 4: Don't Repeat. It's easy to fall back into bad spending habits when you’re not in debt anymore, but if you do, you'll have to repeat the previous steps all over again. It's easier to just stop buying everything you want and focus on what you need. Always second guess when you’re buying something useless. You can almost always go without these items.
Word.
~James
