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Debt is almost assumed to be a part of modern life. Many people are unaware of the total debt balance they owe, and are in denial of the deleterious impact debt has on their lives. The Bible says that the debtor is slave to the lender, and this could not be more relevant. Debt takes a mental and even spiritual toll on us, and can run our lives if we work long hours to pay it.
Debt comes in many forms. Medical bills, credit cards, mortgages and car notes are just a few of the major forms we become buried under. In general, there is revolving debt and one-time debt we take on. It's easy to bite off more than we can chew and become overwhelmed mentally by our debt load. It doesn't matter where the debt came from and how noble or ignoble the source, we took it on and we are the party that must pay it in full. How can we organize our thoughts and begin the arduous process?
The first step to digging yourself out of debt is to take a debt assessment. Write down all the debts you own on from greatest to least. Focus on the interest rates as well. A small debt with a high interest rate, like a credit card, can be more burdensome than a debt with a larger principle with a smaller rare. Dave Ramsey's model is used by many to create a "debt snowball" in which debts are paid and the resultant money saved afterwards is used to pay other debts. This is a good time to visit Ramsey Solutions and learn about the debt "baby steps" and debt snowball approach. This helped me immensely on my debt-free journey.
The next step is to get busy. As a formerly-buried individual, I remember when the reality of my circumstances came to light, the denial was wiped away and the clarity remained. What can we do to pay debt? Sell items on eBay, take on overtime at work, take a second job after working hours and working a side hustle are all ideas. Multiple streams of income should be funneled to smash the debt. When we are busy working to free ourselves, the hopelessness we feel about our debt load diminishes. If we mope around the house after work and feel we will never be free of our debt load, we will sink and backslide into stress and overspending. Chek out the Ramsey Solutions "27 Ways to get out of debt" for ideas. I sold items on eBay and worked as much overtime at work as possible during my journey.
Take a long-term view and look at the big picture. You will pay your debts, you will be free of your debt and you will triumph. Check out your debt-free date at the calculator below in the resources section for a realistic view of your payoff time. Keep your spirits up, and good luck. Build an emergency fund and start a budget to ensure you won't fall back into the jaws of debt again.
Below are some helpful resources for paying off debt:
Nerdwallet debt-tools
https://www.nerdwallet.com/article/finance/debt-snowball-calculator#:~:text=Debt%2Dfree%20date%3A%20This%20is,extra%20money%20toward%20your%20debt.
Ramsey Solutions Debt Calculator
https://www.ramseysolutions.com/debt/debt-calculator
Ways to Get Out of Debt
https://www.ramseysolutions.com/debt/ways-to-get-out-of-debt
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