Managing your debt can takes a lot of self-discipline to ensure you’re spending money on things that are necessary. Managing debt and eventually paying it off takes will power – and a lot of it!
The first thing you're going to need to do is look at your expenses and your income. Ensure each purchase is documented down to every cent you make, and every last Big Mac you order!
After you have everything written down, you can clearly see how much you're making, how much you're spending on monthly bills, and how much you're wasting on small luxuries. Sure, it feels great to go out and get that Starbucks drink, but it feels even better to pay off more debt.
Ask yourself the following:
What can you do to get more money? – Are you earning enough to fit your lifestyle and how quickly are you paying off your credit card bill? Could you get a 0% balance transfer credit card and transfer some debt to buy yourself some time?
What are you spending your money on that you don't need to be spending it on?
Finally, how soon do you want to get out of debt? Make it at least somewhat realistic and write it down. It is important to have a goal to work towards.
Now, look at the answers to the first two and start thinking of ways you can pay your debt off faster so that you can reach the time frame that you wrote down in the third answer.
Having debt isn't fun, but that doesn't mean it's bad. After you've paid off all your debt, your credit score will improve, and you'll be able afford purchases that require a large amount of capital such as a car, a house, or a loan for something else that's big you want.
Managing your debt can be a nightmare, but that doesn't mean it’s impossible. Just keep working towards your goal of being debt free and realize that it can get easier if you apply self-discipline. Once you're finished paying off all your debt, you'll wonder what you could have done with that extra money!