How to Get Out of Debt and Stay Out of Debt

I am often asked questions such as how to get out of debt and how to stay out of debt.

Because of how society is it is so easy to get into debt. No one really explains to us that we do not have to get into debt and we certainly do not have to stay in debt.

Society ingrains in us this need to constantly buy things. And it is not always to keep up with the Jones’. It’s really this idea that that we need more: more shoes, coats, purses and a bigger car.

Fortunately, you can learn how to get out of debt and stay out of debt.

How to get out of debt using easy three step process:

1. Stop over spending. Halting the spending on unnecessary things will keep you from going deeper into debt.
2. Say no to using your credit card. The average household credit card debt is approximately $15,000.  I can personally attest to the fact that I have had this average amount of credit card debt several times over the last 27 years. Stop using your credit cards and focus on using cash to pay for things.
3. Put yourself on a budget and stick to it. I love budgeting as it is a personal spending plan. Create a personal spending plan that emphasizes reducing debt and increasing savings. Read more about sticking to budgets here.

People tend to put too much thought into how to get out of debt and how to stay out of debt. It is not a confusing or difficult concept to adopt. If you think about spending on an item, think about whether you REALLY need that item. The chances are no.

My desire is to get to a point where I can live off $15 an hour. I know that sounds crazy but I think I can get to that point.

My mission in life is to reduce my debt to the bare minimum but still be able to live an amazing life. I figure the less debt I have the more money that I can save. The more money I can save the greater my freedom.  So my focus is to get and stay out of debt.

How to stay out of debt by focusing on reducing debt

Saving money can also be another way to stay out of debt. Meaning, save enough money so you don’t have to resort to credit cards or loans.

I use money I save rather than a credit card for most of my expenses. If I do have to use a credit card, I pay more than the minimum balance on those cards.

In this article, “What Happened When I Quit Credit Cards”, the writer says of her experience not using credit cards, “It seemed like an odd plan, but I decided to try it. When the three months were up, a strange thing had happened: The money felt as if it was mine, and I wanted to save it, not spend it. That three-month pause changed my relationship with savings; I’ve been able to keep money in my emergency fund ever since.”

The author’s choice to stop using credit cards is a great example of how to get out of debt and how to stay out of debt.

I have consistently talked about the importance of an emergency fund. Unfortunately, I recently had to use my credit card to pay for an emergency. This particular emergency would have taken more than half of my emergency fund (YIKES!!!) However, I will be able to pay off the card pretty quickly. I will continue to make additional payments on the card and should have it completely paid off by the summer of 2019, the same time I will have paid off my car.

Final words on how to get out of debt and stay out of debt

If you are in debt, think about ALL the ways you can stop spending and dedicate your savings towards your debt. Think to yourself if you would rather have that particular item versus the vacation of your dreams.  Is it better to spend more money on shoes rather than saving your money so you can buy a car with cash? To get out of debt and stay out of debt you need to be laser focused on creating a different and better life for yourself.