Find Out How to Get Out of Debt (And Stay Out)! | St. Johns Bank
The team at St. Johns Bank doesn’t want you to live a life where you feel as though debt is the answer. Instead, our team wants to help you live a life that includes financial freedom! Therefore, the time is now to find your way out of debt - and stay out once and for all!
Face the Problem!
What is it that Mark Twain says? “Denial ain’t just a river in Egypt.” But it can definitely be a slippery slope if not handled correctly, such as with your debt. In order to gain back control of your debt, you need to face the fact that it is there, and it needs to be taken care of.
Then, as you face reality, it’s important to remember not to panic. When you panic, you’re at an increased risk of making more mistakes because you’re not thinking correctly. Calm down. Gather all your financial information and credit card statement. You need exact numbers so that you know exactly what you are dealing with.
Next, it’s time to create a budget that includes paying down your debt. Start with the highest interest rates first, and then work your way down. However, make sure you’re paying at least the minimum on the others until you’re done paying off one. (Learn more about the Debt-Snowball Method here.)
Also, when creating a budget, make sure you cut out the extras where you can. While you don’t have to cut out every trip to the local coffee shop or stop eating out with friends, you do need to do so with only cash, and it needs to be limited to once or twice a month. The other money you would be spending on the extras needs to go to paying off your debt.
Finally, when you’re out of debt - stay out! Don’t let your ability to overspend get the best of you and your finances again. Learn from the tough lesson, and move forward in the right financial direction!
Now that you’re financially free, are you ready to start establishing an emergency fund? Contact St. Johns Bank to learn how we can help you get started!