All posts from Sam
Sam in Stack That Money,

Straightforward Guide For Getting Out Of Debt

Straightforward Guide For Getting Out Of Debt

With the current state of the economy, more and more consumers are finding themselves with debt up to their eyeballs! This can be very overwhelming and can put a damper on a household. Owing money is very serious and should be treated with caution! Taking steps towards paying off your debts is highly recommended. Below, you will find the basic steps for organizing your personal finances and eliminating your debt.

Calculate It

First and foremost, it is imperative to figure out precisely how much you’re spending and how much is actually coming in! In order to keep yourself from falling deeper into debt, you need to ensure that your income exceeds your expenses. It is also wise to make sure that you store your excess in a safe location, such as a savings account. This will provide you with a little peace of mind and protection in the event of a future accident or emergency.

Setting Goals

Getting out of debt is anything, but easy! In fact, it is long and grueling! You’ll need to get into the long-term mindset, because you’ll need to remain diligent and dedicated throughout. This is why it is vital to set goals for yourself. Make sure that the goals are actually manageable and achievable, within a short period of time. Setting short-term goals will ensure that you’re able to accomplish them and boost your confidence!

Consider Trading Big Ticket Items

Although you might be drowning in debt, it is still possible that you own overly valuable items. Trading in a massively expensive vehicle for one that is much more affordable can put more money back into your wallet. You can also use the surplus earnings to pay off small portions of your debt! Although you might adore your Jet Ski or Hummer, you should still contemplate its true necessity. Sometimes, it is best to let it go for the capital.

Paying off Loan Balances

If you genuinely want to get out debt, you will need to pay off your credit card debts and loans. Now this will be a challenging process and may take you several years to accomplish your goal, but if you are diligent you will succeed.

One great way to pay off your balances, without feeling the financial pressure is to pay more than the minimum payment due. Over time, you will begin to see the total balance begin to diminish, but again it will take some time, before you actually see a huge transformation.

Focus on the loans that have the highest APR, so you will be paying less in interest and more on the principal. You should also consider asking your creditors about lower interest rates. Some loan companies may be willing to help long-term customers that have a high credit score.


Debt can be downright crippling, if you allow it to swallow you whole. However, you can and should fight back, with all of your might! Taking a step back, sitting down and organizing your personal finances can help. From there, you’ll be able to set goals and begin paying off debts slowly. Before you know it, you’ll be debt free and your credit will be improved greatly!