Obstacles To Face In 2014 – How To Get Out Of Debt As Soon As Possible

According to a survey by Trans-Union, around 48% of Americans are committing to at least one financial resolution in 2014. That being said, it is also seen that 37% of them did not reach their financial goals in 2013. Resolutions are hard to keep but easy to make. In fact, goals can be more achievable when you have a financial coach by your side. 2014 can be a tough year for all those who are not financially prepared. So, what will happen to your soaring debts that were already in a state of disaster? How will you repay them if you don’t know how to handle your dollars this year? What if you have to pay a huge portion of income towards the surging interest rates?

Resolve to pay off your debt immediately

Nelson Mandela says “It always seems impossible until it’s done”. If you’re determined to tackle your debts, you’re not alone. In fact, paying down debt was at the top of all American’s financial priorities in 2013. According to predictions by TransUnion, the average American consumer debt will rise by 5% by the end of 2014. What is the way out for such problems?

Well, it’s true that debt is too stressful a thing but can you imagine how you would feel when you’ve got a full-proof plan to target off your debts. How you will feel when you will see debt retreating and when you will be finally free and clear of all debt obligations? But there’s no free lunch in this world and therefore in order to repay your debts, you need to take some effective steps.

The effective steps to bid goodbye to your debts

Check out some of the most effective steps that you may take in order to become debt free as soon as possible.

  1. Follow a frugal budget: No, this time you won’t resolve to follow a budget and then forget about it! You have to make sure that you prepare a frugal budget and then follow it throughout the month. Jot down all the necessary and the discretionary expenses so that you can keep a track of everything and stay within your means. Don’t spend on anything that is not on your budget.
  2. Promise yourself to save money: If you’re not one of them who effortlessly saved money, be strict with yourself. Remind yourself of the rewards of spending a debt free life and then motivate yourself to save money. Spend only on the necessities and save the rest of the money, not under your mattress but in your savings account.
  3. Pay off your debt one by one: Make a list of all the debt accounts that you have and list them according to the highest to lowest interest rate accounts. Start paying off the account that carries the highest interest rate while continuing to make the minimum monthly payments on all the other accounts. Once you’re done, you can proceed towards the next account with the second-highest interest rate.

By following the above mentioned steps, you can gradually become debt free. Don’t have unrealistic expectations of attaining a debt free life overnight. Invest your time and take the right steps.

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