By USAA Educational Foundation
Being in debt and falling behind feels awful. But here’s some good news: if you’re committed to getting out of debt, this program can help you get there. In six practical, proactive steps, you can destroy debt and work your way to a whole new financial feeling! Below is a video that walks you through the first step: stop the bleeding.
To get out of debt, you’ve got to stop adding to it. Whether it began with unexpected needs, or too many wants, it’s time to call a halt. Here’s how:
Avoid new debt
To avoid new debt, pay with cash or debit, never credit. It’s that simple. Going out? Take cash only. A PX or BX Black Friday Sale? Debit, or forget it. A cash-only diet will bring you into closer relationship with your bank balance – and that’s a good thing. Use your bank’s mobile app, set low balance alerts, and carry cash for routine purchases. In short, only spend real money that you actually have.
Evade tempting debt
Remember those needs and wants? Work on recognizing the difference - and know when to run! Delete the shopping app you’re addicted to, or steer clear of the coffee shop you can’t resist. And, when a “gotta-have-it” moment hits, put a freeze on it – even if it literally means freezing your credit cards in ice. Sometimes waiting for a card to thaw out can give you time to firm up and summon a little will power.
Eliminate penalties
Finally, it’s important to eliminate penalties that can add to your debt. Even if you can only make minimum payments, keep at it. Don’t let a single dollar go to extra penalties or fees due to late or missed payments.
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