Make Your Own Get Out of Debt Plan The sooner you get out of debt, the easier it will be for the rest of your finances. However, most people have trouble making the first step. It is a long process requiring a lot of time, effort, and sacrifices. Although it looks impossible at first, you can get out of your debt, as long as you really want that to happen. There are many people with several maxed-out credit cards and student loans who still managed to be debt-free. You just need to know how to do it. Getting out of debt is a life-changing experience. Getting rid of your financial burdens is just the first step. You also need to develop financial stability, which requires some changes to your lifestyle. The Accuracy of Credit Report If you want to achieve financial freedom, you should know the real, actual, true status of your finances. You can start by listing all your debts. You should figure out the sum of your minimum payments, so you will be able to know how much you need to pay each month. You should also get a credit report and check it thoroughly and make sure that the report is accurate. Look it over to see that all your outstanding cash loans are listed in it. If there are any mistakes in the report, then you must take action right away. There are instances in which someone might have opened a credit card in your name without you knowing about it. If that is the case, you should contact the credit provider, debt collector, or the reporting agency so that you can address the problem as soon as possible. Put Debts in Groups and Prioritize Once you have a list of all your financial burdens, the next step is to group them into different categories. You should sort them into high interest, delinquent, and current debts. By grouping them, you can easily prioritize the category to pay off first. You should ignore your payables first and try to keep current with the ones you are already current.  You also need to find the one account that requires special attention or is most important to get paid off. You should prioritize the debt with the lowest balance first. Try to pay that one off as fast as you can, and then use that money towards the next account. This technique is known as the “snowball method.”  You can also choose to pay off your debt that has the highest interest rate. Accumulating high interest makes the loan more expensive over time. Getting rid of that account first will save you lots of money. Lastly, you can prioritize the debt you hate the most. It will give you a much-needed emotional victory when you it off and will also motivate you to get out from under all your other debt as well. Find Out If You Can Reduce the Outstanding Amount Various creditors will allow you to reduce your outstanding balance. For instance, hospitals allow patients to negotiate in order to reduce the total amount of medical debts. However, they require individuals to sign up for a payment plan. For student loans, you should find out if you qualify for a forgiveness program. There are programs that allow this for people who worked for a government agency or a non-profit organization. Look at Your Financial Situation It is important that you know your financial situation. Make sure that your income is enough that it will allow you to pay off your debt in a sustainable manner. If your current income is not enough, then you should consider getting a different or an additional job or think about going to a debt counselor. Create a Budget Creating a great budget plan is never easy. You can try the 50/20/30 rule and adjust the values depending on your situation. You should list the essentials in your life, such as mortgage or rent, utilities, groceries, and transportation costs. It is important to be strict within your budget. When it comes to the roof over your head, make sure you can afford the house in which you live. If your housing expenses are more than 30 percent of your income, you are living above your means in terms of lodging and need to make adjustments. For transportation, you should consider ways to get to work in a less-costly manner. Taking the taxi might be convenient, but it is also more expensive than other commuting methods. You can save a lot of money, both in the long and short term, by taking the subway or bus instead. You should use about 20 percent of your income for paying off your debt, as well as for adding to your savings. If the minimum monthly payments are less than this percentage, then you have the ability to pay more than the minimum amount. That way, you can get rid of your financial burdens faster. However, if the minimum installments are more than the 20 percent, you should take the rest of the needed amount from the remaining 30 percent. That 30 percent of your income is for your personal spending. also If you use this amount to pay off debt faster, however, you will be sacrificing your personal wants, which might lead to your losing motivation in the fight against debt. The Payment Plan Once you have a budget, you should consider making a payment plan as well. Whether you are paying off the -debt with the highest interest rate or the one with the lowest remaining balance, you should choose the one that best suits your lifestyle. You should also find out how you will pay your bills, whether that is weekly, bi-weekly or on paydays. There is no one right or wrong way of doing things that help reduce debt. You should get rid of debt according to what works best for your situation. For instance, if you are paid twice each month, then you can pay the bills with each paycheck. When you pay your debts, make sure you reflect the changes in your spreadsheet you should be keeping that contains a record of your finances. That way, you can see the balance decrease over time. Seeing this happen would keep you motivated and let you monitor how much debt you need to pay.  Change Your Behavior If you want to achieve a debt-free status, you should eliminate the reasons you resorted to getting loans in the first place. The chances of winning the Lotto are so small that it is never the answer to your financial problems. People apply for loans because for different; those include college, medical bills, and job loss, just to name a few. The reasons you have debt don’t matter, though. What matters the most is that you don’t make the same mistakes again. For instance, if you took a $40,000 loan to get your bachelor’s degree, then you definitely should not take on more debt to complete a doctorate degree. It doesn’t make any sense to get a graduate degree that would result in more debt. Having a Ph.D. doesn’t guarantee a high- paying job after earning it. If you are living above your means, find out how to live a life that you can afford. It might not be easy, but you will achieve both financial independence and financial happiness once you manage to do so. It takes time to be accustomed to a frugal way of living but you need to sacrifice something in order to get out of debt, which should be your main goal. If using your credit cards got you into trouble, then you should stop swiping to pay for your purchases. You should think about using cash when shopping, instead. The simple act of physically giving away your money to buy things will make you think twice about purchasing items you don’t really need. Being debt-free is possible with proper planning and an improved mindset. As you can see from these tips, organizing the debt payment process is the best way to ensure you are on the right path toward financial freedom. 
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Make Your Own Get Out of Debt Plan The sooner you get out of debt, the easier it will be for the rest of your finances. However, most people have trouble making the first step. It is a long process requiring a lot of time, effort, and sacrifices. Although it looks impossible at first, you can get out of your debt, as long as you really want that to happen. There are many people with several maxed-out credit cards and student loans who still managed to be debt-free. You just need to know how to do it. Getting out of debt is a life-changing experience. Getting rid of your financial burdens is just the first step. You also need to develop financial stability, which requires some changes to your lifestyle. The Accuracy of Credit Report If you want to achieve financial freedom, you should know the real, actual, true status of your finances. You can start by listing all your debts. You should figure out the sum of your minimum payments, so you will be able to know how much you need to pay each month. You should also get a credit report and check it thoroughly and make sure that the report is accurate. Look it over to see that all your outstanding cash loans are listed in it. If there are any mistakes in the report, then you must take action right away. There are instances in which someone might have opened a credit card in your name without you knowing about it. If that is the case, you should contact the credit provider, debt collector, or the reporting agency so that you can address the problem as soon as possible. Put Debts in Groups and Prioritize Once you have a list of all your financial burdens, the next step is to group them into different categories. You should sort them into high interest, delinquent, and current debts. By grouping them, you can easily prioritize the category to pay off first. You should ignore your payables first and try to keep current with the ones you are already current.  You also need to find the one account that requires special attention or is most important to get paid off. You should prioritize the debt with the lowest balance first. Try to pay that one off as fast as you can, and then use that money towards the next account. This technique is known as the “snowball method.”  You can also choose to pay off your debt that has the highest interest rate. Accumulating high interest makes the loan more expensive over time. Getting rid of that account first will save you lots of money. Lastly, you can prioritize the debt you hate the most. It will give you a much-needed emotional victory when you it off and will also motivate you to get out from under all your other debt as well. Find Out If You Can Reduce the Outstanding Amount Various creditors will allow you to reduce your outstanding balance. For instance, hospitals allow patients to negotiate in order to reduce the total amount of medical debts. However, they require individuals to sign up for a payment plan. For student loans, you should find out if you qualify for a forgiveness program. There are programs that allow this for people who worked for a government agency or a non- profit organization. Look at Your Financial Situation It is important that you know your financial situation. Make sure that your income is enough that it will allow you to pay off your debt in a sustainable manner. If your current income is not enough, then you should consider getting a different or an additional job or think about going to a debt counselor. Create a Budget Creating a great budget plan is never easy. You can try the 50/20/30 rule and adjust the values depending on your situation. You should list the essentials in your life, such as mortgage or rent, utilities, groceries, and transportation costs. It is important to be strict within your budget. When it comes to the roof over your head, make sure you can afford the house in which you live. If your housing expenses are more than 30 percent of your income, you are living above your means in terms of lodging and need to make adjustments. For transportation, you should consider ways to get to work in a less-costly manner. Taking the taxi might be convenient, but it is also more expensive than other commuting methods. You can save a lot of money, both in the long and short term, by taking the subway or bus instead. You should use about 20 percent of your income for paying off your debt, as well as for adding to your savings. If the minimum monthly payments are less than this percentage, then you have the ability to pay more than the minimum amount. That way, you can get rid of your financial burdens faster. However, if the minimum installments are more than the 20 percent, you should take the rest of the needed amount from the remaining 30 percent. That 30 percent of your income is for your personal spending. also If you use this amount to pay off debt faster, however, you will be sacrificing your personal wants, which might lead to your losing motivation in the fight against debt. The Payment Plan Once you have a budget, you should consider making a payment plan as well. Whether you are paying off the -debt with the highest interest rate or the one with the lowest remaining balance, you should choose the one that best suits your lifestyle. You should also find out how you will pay your bills, whether that is weekly, bi-weekly or on paydays. There is no one right or wrong way of doing things that help reduce debt. You should get rid of debt according to what works best for your situation. For instance, if you are paid twice each month, then you can pay the bills with each paycheck. When you pay your debts, make sure you reflect the changes in your spreadsheet you should be keeping that contains a record of your finances. That way, you can see the balance decrease over time. Seeing this happen would keep you motivated and let you monitor how much debt you need to pay.  Change Your Behavior If you want to achieve a debt-free status, you should eliminate the reasons you resorted to getting loans in the first place. The chances of winning the Lotto are so small that it is never the answer to your financial problems. People apply for loans because for different; those include college, medical bills, and job loss, just to name a few. The reasons you have debt don’t matter, though. What matters the most is that you don’t make the same mistakes again. For instance, if you took a $40,000 loan to get your bachelor’s degree, then you definitely should not take on more debt to complete a doctorate degree. It doesn’t make any sense to get a graduate degree that would result in more debt. Having a Ph.D. doesn’t guarantee a high-paying job after earning it. If you are living above your means, find out how to live a life that you can afford. It might not be easy, but you will achieve both financial independence and financial happiness once you manage to do so. It takes time to be accustomed to a frugal way of living but you need to sacrifice something in order to get out of debt, which should be your main goal. If using your credit cards got you into trouble, then you should stop swiping to pay for your purchases. You should think about using cash when shopping, instead. The simple act of physically giving away your money to buy things will make you think twice about purchasing items you don’t really need. Being debt-free is possible with proper planning and an improved mindset. As you can see from these tips, organizing the debt payment process is the best way to ensure you are on the right path toward financial freedom. 
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