Most Americans have made eradicating personal debt a top priority. If they haven’t, they should, considering the way debt can negatively impact one’s life. Unfortunately, such a process is far from easy; you can’t snap your fingers and get it done. It’s not just paying off the bills, but it’s not impossible get out of debt either.

The key to eliminating debt is realizing that getting started is one of the hardest parts. Deciding you want things to change is easy; making them change is where things get sticky. People get emotional when looking at the reality of their finances. They become ashamed of how they’ve behaved, and that sense of guilt can be gnawing. It becomes easier to just ignore how bad things really are.

You can run, but you can’t hide. Eventually, those poor financial habits and the debt that comes in their wake will catch up to you. If you don’t change now, you’ll have to change later, except it will be even harder the longer you wait. Every moment you wait, the interest collecting on your debts pushes you further and further down the hole from getting out of debt. Moreover, the later you are on payments, the further down your credit score goes, which puts you at financial risk in the long term. You could potentially lose your home to a mortgage. At some point, it becomes too late, and bankruptcy is the only option.

How to make that change

Once you’ve coped with the emotional part, the planning stage begins. Making a list of all the money owed in a month can help you prioritize. It’s important to put aside money for bills that aren’t related to debt first, such as rent and utilities. After that money has been deducted from the pot, start paying off the debts with the highest interest rate first, in order to save you money as time goes on. Keep going down the list as the debts are eliminated. With each one you cross off the list, you’ll be that much closer to financial freedom.

 

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