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The 5 Golden Rules of Getting Out of Debt
by ReadyForZero (Pearl Park)
Everyone has, at some point, been in debt. Being buried in debt isn’t fun. I’ve been there. As they say, education shouldn’t be a debt sentence: it did turn out that way for me, as I’m sure it has for countless students out there.
As you read these finance blogs on the web, you’ll be sure to come across great advice on how to tackle your debts. Some of the typical advice will be about budgeting, changing spending habits, and even contacting your creditors for help. These are all great tips that are essentially the framework for anyone looking to pay down their debts.
Dave Ramsey believes that getting out of debt is 20% knowledge and 80% behavior. I couldn’t agree more with his statement. Your debts won’t magically disappear overnight, so it’s important to stay grounded and motivated to become debt free. Here are some of the ways I managed to fight this uphill battle and finally became debt free:
Don’t Use it if You Can’t Afford to Lose it!
Cardinal rule number one: stop spending what you don’t have. It’s easy to fall into that game: sure, I’ll pay it off LATER after the next paycheck, allowance, etc. Trust me, I know that game all too well. That is one too many I played in my college years, but all the more wiser now.
Why else do you think these card companies used to hit up college campuses & provide free giveaways for signing up? People like to spend money that they don’t have! The idea of money that you can pay back later is actually pretty genius. You don’t see the cold cash in your hand- the credit card itself it actually an illusion of money. You don’t see yourself really spending it because you’re not.
The first step is always to stop using it until you’re able to pay back or down what you’ve already spent. Put that card away- leave it at home or in safe keeping someplace, so you’re not tempted to use and abuse it.