Life happens, and along with it often comes debt…and you know what? That’s ok! Whether we have debt in the form of student loans, medical bills, an emergency of some sort that had to be financed, or too much spent on credit cards - we have all had our share of debt to repay.
Having debt that you owe is fine, but making savvy money decisions about how to pay the debt off is the important part. Learning about your debt consolidation options from your local credit union is a smart decision to consider paying off the existing debt you owe.
While there are many theories about the best ways to get out of financial debt and stay that way, some strategies clearly have better success rates than others. Here are some of the most popular debt consolidation tactics that really work to keep your debt down.
If you do not know how you are spending your money, there is no effective way you can make changes to your unhealthy financial habits for a better future. In order to know exactly where your money is going each month, you need to track your spending. To do this, simply create a budgeting spreadsheet, grab a notebook and write down every penny you spend or log into your online banking to review the previous month’s spending. Tracking your spending lets you know where you need to make changes for a bright and debt-free future with better spending habits.
Make it a point to end each day in a responsible and reflective way, even if you have not been faithful to your budget or daily spending limit. Part of being financially responsible is to recognize that you will not be perfect each day. As long as it is not a regular habit, it is really no big deal to go over budget once in a while. The key to success is to find ways to keep yourself in check the majority of the time and get back on track quickly so that your financial goal is clearly in sight and obtainable.
The goal is to consistently live within your budget to remain debt free, so do whatever it takes to stay on course. Create incentives to help you stay on budget that will inspire you to remain dedicated to the cause. Great ways to stay on budget and avoid overspending include tracking your spending, paying cash to eliminate excessive credit purchases, and avoid impulse spending triggers like your favorite hobby store.
Sometimes you have to ask yourself some hard questions about your spending habits to clearly see how you got into debt in the first place. Are you an impulsive shopper? Can you really afford the car you drive? Have you done your homework to ensure you are getting the best price for your major purchase? Are you living payday to payday?
It is time to examine the financial choices you are making to see exactly where changes can be made for a brighter, debt free future. Once you have determined a better financial strategy, it may be time to consider a debt consolidation loan so that you can create a budget you can follow to successfully pay off your debt.
If you are serious about debt consolidation to take control of your finances, engage a trusted friend and ask that they help you on your journey to financial success. Having someone you respect and trust that will hold you accountable for your financial responsibility is a debt consolidation tactic that really works. To be successful, make sure your friend clearly understands your financial goals and what you need from them to achieve the goals. Not only will your friend motivate you to focus on your goals, but they are also there for sound and friendly financial advice when you are feeling vulnerable or confused and need it the most.
If you would like more information on common debt consolidation loan options, contact your local credit union to see which would be the best fit for your financial situation.