I don’t make News Year’s resolutions. They don’t work for me because I make them and then forget them. I forget them almost as fast as I write them down. This year is different, this year I enter the year with more debt than I know how to pay off.
That being the case I decided that this year I would make an exception, this year I have made a New Years resolution that this will be my year to get out of debt and learn how to live within my budget. Easily considered, easily planned but can I really live without creating new and crippling bills? Here is my plan, what do you think?
- Add up all of the bills that I owe, leave out the car and the house
Why leave out the car and house? Unfortunately they are stable debts that will be with me a long time. I can try and pay them off sooner but it’s not likely that I will have either paid off this year.
- Look at the interest charged on these debts and consider consolidating the debts into 1 larger debt with (hopefully) a lower interest rate.
Not all of the debts carry a large balance or interest rate, if possible pay off the debts that carry a high interest rate quickly and see if the ones with low interest rate or zero interest rate will allow a balance transfer.
If a balance transfer to a zero interest rate is not possible then start research for an installation loan that is large enough to pay off all of the debts. It’s easier to keep track of one debt than trying to keep up with a bunch of small ones.
- Take a look at what I can afford to pay to get rid of those debts, then look again for little luxuries or bad spending habits that I can learn to do without or at least cut down on how often I indulge myself. Little luxuries can add up to real money. Things like grabbing coffee on the run, instead of bringing a mug of coffee with me, buying a brand product when a no-name product works just as well or going out to eat for the ‘nth’ time this week. I can’t deny myself all of my bad money habits; that is a sure course to failure, but I can cut back. Every time I want to use a vending machine or buy lunch just remember that’s money that could have gone to getting me out of debt. Once I am out of debt I plan to really enjoy some of those things again without the worry of where is the money coming from to pay the bills. I can’t wait to be free of these bills.
There is no way I can get out of debt if an emergency happens. Emergencies always send me further into debt. I am going to pray that there are no emergencies that I can’t handle in 2015, work hard at staying out of trouble – boring – I can feel a yawn coming on right now! But gotta stick to the goal, I can always find trouble next year. Last but not least look for ways to cut down on spending or find money in everyday living that can go to paying off those debts. Do I really need all those purses? Maybe I can sell a few and put that money towards my resolution.
It won’t be easy but 2015 is my year to get out of debt, that’s my resolution and for someone who doesn’t make resolutions, I am feeling very resolute!