Life After Debt: Make it a Reality

Imagine not having any credit card bills, department store credit card bills or personal loans. Think of the things you could do with the money you currently spend paying down this debt. It can really add up. For example, let’s say you now pay $400 to one creditor, $275 to another, and $150 to the bank, every month, all year long. That means you pay nearly $10,000 a year in debt alone. Once these obligations are paid off, think of the money you’ll have available—to do what you want with.

But to achieve life after debt, you need a plan. Throughout the Your Money series, we’ve addressed many useful topics that can help you down the road to a debt free life. Here’s a recap of the major milestones:

Step One:

Take inventory of your current financial situation. This includes evaluating your assets, adding up all your debt, and obtaining your credit reports so you know exactly where you stand financially. This way you can take a realistic look at how much you owe and determine the best way for you to handle your debt: a debt management program, debt consolidation and repayment through a home-equity-type loan, or bankruptcy. If you need assistance with finding out which option is best for you, give us a call at 1.877.544.9126.

Step Two:

Establish a budget. This includes setting a monthly spending plan, and examining it to see where you can cut overspending. It also lets you see what amount you have left over after your bills have been paid, so you know how much you’ll have to save and invest. Not seeing a surplus? Time to adjust your budget!

Step Three:

Gain control of your financial life. From correcting bad spending habits to increasing your personal financial knowledge, you need to identify how you got into debt—so you can get out of it (and stay out).

Step Four:

Make money—and save money. Increase your paycheck potential by showing upper management you’ve got the right stuff. And know how to invest your money wisely, so it can grow for your future plans.

That leaves us with the final step: Stay out of debt. By spending, saving and acting wisely, and avoiding the lure of new debt, you can experience all the joys of a financially stable life. After all, it’s your money.