Do you feel like you're always in debt? You try to pay it down, but instead of shrinking, your debt just continues to grow? Sometimes, it probably feels like you're never going to get rid of it. Well, you can get rid of debt, and you have the power and ability to do it. To start, there are a few key things you can do to get things turned around.
First, it is important to stop and take stock of your current cash inflow - what's coming in and what's going out - to figure out what you have to work with. A budget can be a great way to do this.
OK, so now that's done, take an inventory of what you owe. It may feel overwhelming to add everything up, but you do need to see the full picture. Once you've done this, you can then tackle it in bite-sized pieces. It's like any major task - writing a book, learning a language, or even losing 20 pounds. You can't do it all at one time. You have to take small steps to reach your goal.
The good news is, when it comes to reducing your debt, things will get easier as you go. That's because your interest costs will go down as your debt shrinks. A good practice is to organize your debts in order of their interest rates. Make your normal monthly payments so you don't get behind, and direct as much as you can to the one with the highest rate. As soon as that one is paid off, check it off your list, celebrate your success, and then continue with the next one in line.
You can stop the cycle, and get yourself out of debt. There's definitely a finish line. And if you can't see it now, by working away at it, a little bit at a time, you'll get there.