No one likes to discuss the subject of debt; in fact, the shame and stigma surrounding debt can make it next to impossible for many individuals to even approach the subject let alone start to fix it.
It takes hard work, but it is possible to leave debt in your past. Here are some ways you can work toward living debt-free.
1. Fully Assess Your Situation
This step begins with the acceptance that you are in debt. This is a more important step than you realize, and it can do wonders when it comes to your mental preparation to solve your debt problems.
The second part requires a detailed and comprehensive look at your finances. Take steps to know exactly where you money comes in and goes out each month. You can use these numbers to figure out a plan moving forward, and it can help you understand how you may have gotten into debt in the first place.
Once you’ve assessed your situation, it’s time to commit to becoming debt free. This commitment can be anything but easy, especially if you’ve become accustomed to using your credit card to pay monthly expenses; however, it is of true importance.
3. Live by a Budget
Once you’ve committed to resolving your debt, it’s time to create a budget. Distinguish between wants and needs, and be open to places where you can cut costs. For example, ditching name brand foods or cleaning products and cancelling a few streaming services are easy ways to save. Putting that extra money toward your debt can add up to a big impact.
4. Ask for Help
It can be very difficult to ask for help, especially when it comes to a debt problem, but family and friends can be your greatest resources. Whether it’s financial help or a source of advice, friends and family can be great allies.
If you are curious about buying a home, but are faced with debt to overcome, CNE can help you create a path to reach your goals. Make an appointment with our Homeownership Coach to get started.