1) Focus on the positive
Before you confront a mountain of bills, remind yourself what’s working for you. Think and reflect on what your accomplishments have been and be proud of what you have earned and worked hard to achieve. Relationships, education, career experience, health and spirituality are all components of well-being; savoring the positive can provide the motivation and oomph to tackle the bad stuff.
2) Set one to three manageable goals
Don’t overwhelm yourself with a long list of things to fix immediately. For example eliminating credit card debt, creating a plan to pay student loans and building an emergency. These goals are basic and primary that don’t seem daunting. Once you develop a strategy and begin the process, it allows you to move on to other goals, such as college savings and retirement.
3) Get a handle on the real numbers
Although it may seem as though you are not making any progress, whiling paying more than the minimum on your credit cards see what those figures and numbers actually mean. You can use an online debt calculator that will easily show you the truth and show you how fast you are working down your debt, in real time and real figures.
4) Rank your rates, then cut them down
Begin by listing your credit cards on a single page from highest to lowest interest rate, along with the amount due and the company contact information. Call each lender and ask for a rate reduction, using this script: “I have been a cardholder since ____. In the past few months, several credit card companies have offered me lower rates than my current rate with you. I value our relationship, but would like you to match the other offers that I have received and reduce my interest rate by 10 percent. Are you authorized to adjust my interest rate?” (If they say no, ask politely to speak to someone who can and repeat the request.)
5) Snowball it down
This requires focus, for example when you see your car debts coming to an end, you then direct the money to your highest-interest credit card. Comparably, when that’s paid off, the money will be targeted to the next credit card until they’re all completely paid off. Then that giant snowball of cash will be used to pay off your next debt (for example Student Loans.) The vital thing to remember is to keep that money out of your daily budget, so it doesn’t get used to boost your lifestyle at the expense of your future.
6) Track spending to the penny
Begin looking for ways to reduce your monthly expenses, and thinking about your choices in a value-oriented way. Dropping non-essentials and eliminating indulgences, like a gym membership you barely use can cut the fat out of any budget. Find ways to save on cable and auto insurance, taking advantage of deals, discount rates and call up to find out if they will value you as a long time customer by offering you savings. Also think about switching carriers but evaluate how that will effect your life, also VOIP and package deals offer joint discounts overall. The idea is to cut where you can so you can spend on what is most valuable to you. The only way to do that is to see and check where every penny is going and evaluate.
7) Keep a Journal of Gratitude to stay motivated
A journal you keep to jott down the things you are grateful for, even when things seem most bleak the solace we get from when little things go right, and often we have many big things to be thankful, give us a feeling of accomplishment. The journal becomes a reminder of how far you’ve come, and helps to find the energy and patience to keep moving forward.