In today’s society, many people live paycheck to paycheck, credit is used as the back-up plan, and there is no money left to save. But think about it, “What were you taught about finances and/or credit”. Do you value money or do you live to spend it as soon as you get it? If life happened to you right now, are you able to move forward because you have at least $1,000.00 in the bank? If you got fired or laid off next Tuesday, do you have at least six months of income in the bank? I know some of you are reading this like, “Charron are you crazy, I don’t make enough to save $20.00”. In your doubt, I want you to ask yourself, “How bad do I need this freedom”? Are you willing to take your lunch versus buy your lunch to save $60.00 a week? But since I am here for your breakthrough, I will offer you 6 get-out-of-debt strategies that I teach my coaching clients and used myself;
- Stop Impulsive Buying ~ You don’t need something just because it’s on sale. Understand the difference between a need and want.
- Stop Using Credit Cards for rewards ~ You have to spend more to get any reward that is really worth the process.
- Stop Trying to Keep Up With The Joneses ~ Before you compare yourself to your friends or neighbors or try to buy everything you see them with, understand what they had to do to get it or if it’s actually theirs.
- Shopping To Change A Mood ~ Shopping can be great therapy but it can also lead to great pain when you can’t pay the bill.
- Pay More Than the Minimum Payment ~ Paying the minimum every month doesn’t mean you’re getting out of debt – in fact, minimum payments are often calculated to be about 4% to 6% of your balance, which could mean you’re not only staying in debt, but actually accruing more interest.
- Have a Plan (Budget) ~ Haying off debt is great, but trying to do it without a plan in place can leave you throwing your hands in the air and returning to your bad habits. You have to plan ahead and know where every dollar is going if you want to quit your harmful behavior and start fresh.
From 18 to 37 years old, I gave my lack of knowing money and credit permission to control my life and deny me of having one. But now at 39, I can say that the chains of brokenness are broken and because I kept my promise to God, he has elevated my finances. Keeping me grounded to walk forward in freedom, peace and the understanding to know that money has no value to a person who doesn’t value it. I am not completely financially free because of these student loans, and my credit is not an 850, but this time around, I am educated and prepared for life.