What’s Your Plan to Stay Out of Debt?

by Miranda Marquit · 0 comments

Many of us want to get out of debt. It’s one of the top financial goals that many consumers have. And it’s not hard to see why. Debt sucks away your wealth, and puts it in someone else’s pocket. However, you can’t just pay down your debt and expect everything to turn out.

Indeed, it’s about more than just getting rid of your debt. Once you have paid off your debt, you need to make sure that you stay out of debt. In order to stay out of debt, your journey out of debt has to be about more than just paying off your bills. You need to have a solid plan for your finances — one that helps you stay out of debt for the long term.

Change the Way You Approach Money

It’s important to understand that one of the reasons that people end up in debt is due to the approach they use with money. Don’t just look at the symptom, which is your debt; you also need to look at the causes of your situation. Why did you end up in debt? If you have been living your beyond your means, it’s important that during the course of your debt pay down program you have been changing your habits so that you are living within your means.

Unless you have made a fundamental change in the way you manage your financial resources, you could very well end up back where you started in terms of debt. In order to stay out of debt, you need to make sure you don’t return to the behaviors that resulted in the debt in the first place.

Have a Plan for Your Money

One of the best ways to keep from falling back into the debt trap is to have a plan for your money. Create a spending plan based on your financial priorities. Think about what you want your money to accomplish. When your money has a purpose — retirement, charity, travel, college — you are more likely to stick with a plan to stay out of debt, as well as feel more fulfilled in your life.

A plan for your money can help you stay focused on what’s really important to you. Without purposeful spending, it’s easy to get back in the habit of just buying whatever suits your fancy, and not saving up for the most important items. You’ll feel better if you feel more like a resource director, besides. It’s a more active role, and one that makes you feel as though you are truly in charge. Keep that in mind, and you will find it easier to stay out of debt once you pay off your obligations.

Don’t assume that the fight is won as soon as the last debt payment is made. You have won a victory, but you aren’t done yet. You need to make a plan that helps you stay out of debt for the rest of your financial life so that you don’t find yourself right back where you started.

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