Respected finance author, Dave Ramsey, said that becoming debt free is “20% knowledge and 80% action.” Meaning there are no magic tricks and no elaborate calculators or quick fixes to debt freedom. But what actions can you take to slay your debts and make a big personal change to become debt free? Just like a healthy lifestyle change or quitting smoking, the path isn’t easy, but the change you experience will reward you many times over. Here’s what the Take Chargers do to take control of their debt circumstances.
STEP 1 – Get financially real with yourself and set your intentions
WAKE UP!! If you want to be a debt slayer and take charge of your financial situation then you have to bite the bullet and get real. Decide that this is it and there is no waiting for tomorrow to take action.
STEP 2 – Lay your financials out bare
If you don’t know where you are at you wont know what actions you need to take to become debt free. You might need to take drastic action or just a few hop, skip jumps and you’re there. But how will you know if you haven’t taken that cold hard look at your finances.
STEP 3 – Get explicit with your financial goals
Goal setting is the only way to get to the end point in the fastest way possible. Otherwise you’re just haphazardly, all over the place, scrabbling towards an unknown end point. Work out what your goals are and break then down into workable plans.
STEP 4 – Create a get out of debt plan
Look at your goals and work out how you can achieve them. Planning a goal is like following an instruction manual to put together the IKEA cabinet. Make your debt plan a step by step instruction manual. Follow it to the letter. If you need help get in touch, put your goals into action with our Get out off Debt Program.
STEP 5 – Explore options to Eliminate or Negotiate your Debt
You may be able to reach the end point faster by eliminating or negotiating a settlement. You wont know unless you look at your options. Do that! It might be the best thing you’ve ever done.
STEP 6 – Consolidate and Automate to keep your plan focused
Try automating your payments from one account. If you know what you owe (from step 2) then you’ll be able to have a separate account that holds your debt funds and set up direct debits to make that process simple. This is not an emergency account! Don’t dip into it.
STEP 7 – Keep on track – Setting great financial habits that are not so hard
Plan for success. If you side step, quickly get back on track and don’t beat yourself up over it but learn and keep moving forward.
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If you’re facing financial hardship we are here to talk about a solution. Call us on 1300 887 211 or Book a Free No Obligation Phone Consultation with our friendly team and we can discuss debt management options specially focused on your personal situation.