Everyone starts thinking about aspects of their life that they would like to change. If you are looking to change your life by tackling your debt, then this post will show you How to Start Your Debt Free Journey.
Where do I start tackling my Debt?
You have just asked one of the most common questions – where or how do I start tackling my debt? On the surface it is easy – you just pay the money back. But let’s face it, if you are in debt in the first place it will be because you spent money you didn’t have. If you didn’t have it then, you probably don’t have it now. So where do you start. Take a look at this post I wrote which may give you some ideas:
The moment you decided enough was enough. The moment you decided you didn’t want to live with your debt hanging over you anymore. This moment is a real turning point for you and one you will remember well in to your debt free life. Have a read of this post:
The Reality of Your Debt
How do you feel about your debt? I can guess:
Am I right? You may have other feelings you can add. It would be really good if you could pop them in the comments below. This will help other readers who may come here looking for advice and who are experiencing these same feelings. Remember this, you are not alone. You are also not the first.
All of your feelings are powerful ones. You this power to give you the motivation to do something about your debt. Don’t let you debt control you anymore, it is time for you to take control of your debt instead.
Statement of Affairs
This is a scary sounding name but in reality it is just a list of your income and outgoings. This is one of the very first steps you need to take in order to take control. You need to know exactly how much money you have coming in and how much you are spending. This was you will be able to make choices about where you money goes.
I have an instant, downloadable, printable spreadsheet for you to useand you can purchase it here
Reduce your Outgoings
Do you have more month than money? Once you have added your income and outgoings to your Statement of Affairs, you will begin to see where your problems lie. This post will give you ideas of where you may be able to reduce your outgoings which, in turn, will free up some cash.
I have two budgets. Why? One budget is for my ‘needs’ – the things that I have to pay like my mortgage, my utility bills or my grocery money. My reserve budget is for my ‘wants’. I want to go on holiday every year, I want to buy new clothes now and again, I want to go out for a meal with my family once in a while. I don’t NEED to do any of these things, but if I want to do them, then I need to budget and save for them otherwise they will lead me in to debt.
What would you add to your ‘Wants’ budget? Let me know in the comments below.
You can download a Reserve Money Budget spreadsheet here. This is the exact one that I use and you can get yours here
Have you worked through the above steps? Good, that means you know exactly how much you owe, how much you have coming in and how much in left to divert to debt repayment.
The only thing you need to decided now is which debt repayment method would work best for you. There is no right or wrong answer, it is purely down to your personal preference. There are pros and cons to both methods and you can read about them here before you make your decision.
Debt Busting Ebook
A 6 step guide to tackling your debt.
Real Life Debt Stories
This is one of my favourite features on my blog. I invite anyone who has been or is in debt to fill out a quick questionnaire so that I may feature you on my blog. This is completely confidential but it helps others in the same situation as you help them to realise that they are not alone. The stories are truly inspiring and feature people at different stages of their debt free journey.
If you would like to complete the questionnaire, please click on this link
If you would like to read some of the stories, I have listed them for you here:
Why not pin this for later?