Did you know that one in five Americans that are in debt fully expect to be in debt until they die? Only 13 percent of Americans today expect to ever be debt free and in the black. Another 8 percent of Americans do not expect to be debt free until the ripe old age of 71. Those are some sobering numbers. When you are deep in debt it can seem impossible to escape that debt and climb your way into the black again.
Yet it is a new year and with the new year comes new chances to achieve that financial freedom you crave. The good news is that yes you can get out of your debt, and yes it will take some work and some measure of will power but 2015 can be the year you start that journey to becoming debt free. Financial freedom is around the corner if you can follow some rather simple steps to seize the day or carpe diem.
The first step with any illness is triage and believe me debt is an illness, albeit a financial illness. The first step of your debt triage is to tally up your total amount of debts. An astounding number of debtors do not have a clear picture of how much debts and exactly what creditors they owe. Once you know exactly what creditors you owe you can start the next step of debt triage. You need to figure out which of these debts is the most pressing, which have the most repercussions not being paid off quickly, IE which ones have the highest interest.
Once you have the debts categorized by order of highest interest you now know which ones to concentrate fully on. This is not to say that you are to ignore the lesser debts, you must still pay those off and make payments but any extra money above and beyond what you can do for minimum payments should be directed at the highest interest debts first. All of this assumes you already have a budget and follow it, if you need help with making a budget look at this article on making a budget here.
The next step is to do some minor cut backs in a few areas of your spending. If you spend 100 on entertainment try dropping this to 80 dollars. Do this in 10 areas of your spending. I am not advocating cutting back drastically just cutting down the amount spent in 10 areas of your life and not by a great dollar amount but small amounts $10, $20 or $30 here and there. Small is the new big, think small to win big.
The next big step here is to get help with the work. I am talking about reducing your interest rates here. You can ask your lender to reduce your interest rates. Did you know that two thirds of people who asked for a lower interest rate got it? In most cases all you have to do is ask and state a compelling case. Lenders in most cases would rather reduce interest rates than risk a charge off. You can also take advantage of a 0% interest balance transfer credit card offer, cards like the Chase Slate offer a 0% interest rate for 15 months with no balance transfer fee which can give you 15 months interest free to pay off that credit card debt.