When you think about getting out of debt…most of the time you have that thought…“how…and where do I get the money to do it?” or just straight up doubt.
I know because I used to feel that way too lol. The info I am giving you is what I have done for my personal life when I got serious about NOT wanting to struggle anymore.
Well…there is this joke/parable/question or whatever you call it…that goes like this: “How do you eat an elephant? ………………………………………………………………………………………….one bite at a time.” So think of your debt the same way. When you look at all the money you owe as a whole, it looks bigger than you can handle. But when you break you debt down and look at each bill individually, it looks much much better.
So, what you want to do is face your problems and your debt head on. Get a notebook or a piece of paper with nothing on it. Then, 1) Write down all of your debts in order from the smallest amount to the biggest. So now you can see each thing individually. Gather any papers or bills and keep them together so you know who to call or get in contact with for each one.
2) Pay off the smallest debt first then move to the next. This is critical because most people try to put money on everything. Tackling one bill at a time gives you a sense of accomplishment, in truth, it is, because now you have payed off a debt that you no longer have to worry about. Be sure to get a letter from them stating that it is paid off too. You can actually send that to the 3 credit bureaus (Equifax, TransUnion and Experian). By the way, don’t run away from the bill collector phone calls, you will be surprised at what happens when you answer the phone and talk to them about what you can or can not do.
It may take you some time to accomplish getting the entire list completed but you will be actively decreasing your debt, each bill you pay off. However, when you get a chunk of money, like a tax return, here is where you can make some damage. The thing I try my best to teach others is that its all about discipline. There are some days you may want to go out and buy this or that, but you must remember you are working on a greater goal that will allow you to get what you want and not feel chocked by your debt.