How can I get out of debt?

Since the economic crisis has forced many people to finally acknowledge overspending, I am dedicating this blog to help people get out of debt.

What has happened to cause our debt? Through 50 years of subliminal programming the masses to buy anything regardless of their ability to pay, the stark consequences of this behavior is now staring us in the face.

Burgeoning credit card and other debts are causing millions to lose their homes and worse. We were so ingrained to spend more than we had, that savings were as low as during the Great Depression! We cared not… until the bottom fell out. And we don’t like what’s happened. So:

· #1. How do we get out of our self-imposed debt?

· #2. How can we survive while learning how to change?

· #3. How can we be as sure as we can that this will not happen to us again?

Answer to #1: Immediately go into survival mode. Make it a fun challenge. Only buy what is needed to survive: food – cut back – buy cheaper – buy only on sale. No more spending anywhere…on restaurants, clothes (if emergency go to thrift stores), gifts, yes, including Christmas, Sunday drives (gas costs money). Downsize everything: cable, satellite, make do with one vehicle, move into smaller quarters, sell a collection, sell things that haven’t been used in over 2 years. Call your credit card and other loan companies and ask them to reduce the amount owed and to lower your interest rates. Pay off loans with the higher interest rates first. STOP using credit cards! Work an extra job until debt has been paid off. And…to start us on our way to financial freedom…continue that 2nd job until you have an 8-month salary nest egg. In fact, continue saving that 2nd paycheck just to invest! Remember positive attitude adjustment, where past spending habits are replaced with a new innovative awareness of buying choices. You now are practicing transitioning to permanent financial astuteness.

Answer to #2: Keep reminding yourself you are transitioning to a new way of life that benefits you and your family. As debt goes down, and more money becomes available, do not spend it. Start living below your means across the board. Splurge a little once a month, but only after all bills are paid. Make the splurge a freebee or as inexpensive as you can, but still fun worthy. You’ve worked hard to reduce your debt, so do not go overboard and start the debt process all over again.

Answer to #3: As we transition our spending habits, we see positive tangible results. We must continue to be cognizant of our new spending power. When a financial emergency arises we know we can handle it. When we need a replacement vehicle we know we can afford it, that we can pay cash and buy a cheaper one than we can afford. The difference saved can for into a college fund or to boost a 401K.

The hardest part of transitioning is learning how to let go of the overspending magnet that had such a stronghold over our past spending patterns. Try the new way…once. Remind yourself it will benefit you. The next time you want to spend where you did in the past, try the new way again. Everytime you spend the new way means one less time you spent the old way. After a while, the new way takes over totally. Savings spring up, there will be no more financial stress and sleep will improve.

The things mentioned here to help get rid of debt can be modified according to circumstances and how quickly we want to pay off debt and begin living within our means.