Your Finish Rich Plan – A Personal Finance Blog

Archive for April, 2008

One of the main reasons why people have difficulty sticking to any “get out of debt” plan is that they focus too much on the big picture (instead of taking baby steps) and expect quick results. If you’re heavily in debt and are trying to find a way out, you need to remember that you didn’t get in that situation overnight and you are not going to get out of it overnight either.

If you want to be successful at getting out of debt, you’re going to have to properly assess how deep in the hole you are (by getting your credit reports), evaluate your options (by listing your assets), and develop a budget (and stick to it). You’ll also need to know what are the possible consequences of each of the debt-busting options that are available to you.

You also need to view this as a long-term goal. Set smaller milestone goals that you can celebrate achieving – such as paying off each individual creditor, or seeing your balance go down by $1000 over 3 months. Reward yourself when you reach your milestones. It shouldn’t be extravagant, but you’ll absolutely need it if you want to stay motivated! (more…)

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