Whenever you make decisions to improve your life, it can be scary. For instance, when you first start out with your debt plan, you are excited and ready to go. Sadly, many will fail at getting out of debt. And, it may happen to you too.
You might look at your debt plan and think that this time will be different. You will start out thinking that this time you WILL do it. Then, something happens, and you find that you are once again right back at where you started. Before you know it, you’ve failed so many times that you just don’t think it is worth it.
I’m here to say – it is. Please. Don’t give up.
If you are struggling with paying off your debt, these folks may be able to help:
Believe it or not, there may be actual reasons as to why you fail. Of course, there are the issues such as unexpected financial setbacks. However, it is more often out of a failure to have the right debt free plan in place.
Here are six reasons why you will fail at getting out of debt — and what you can do to make sure that this time really IS different.
WHY YOU ARE NOT GETTING OUT OF DEBT
1. You are not mentally ready.
Before you can ever make any change to your life be it healthy eating, exercise or even getting out of debt, you need to make sure your mentally ready. You need to look at your debt plan with a positive mind.
Instead of looking at the amount you owe and feeling like you will never do it, look at it as I can do this. It is important to me, so I am willing to put in the work to get the reward. Consider yourself strong and tell yourself that it is worth it and you know you can and WILL be successful this time.
2. You have no plan at all.
It seems that this should go without say. However, it is the #1 reason why you will fail when it comes to getting out of debt.
If you tried to go to a town you had never visited but did not have a plan including a map or directions, how would you get there? You probably wouldn’t. At least, not without getting lost and off track several times. You may even end up back at home having to try it again.
The same is true with debt. You need to create an action plan including your debts to pay, budget and then a plan of action to attack them. Once you have a plan, post it where you can see it (every day), so you don’t forget what you need to do to reach your goal.
Read more: How to Get Out of Debt (Even on a Lower Income)
3. You don’t have a budget.
I know, I know. You hear this one every time you turn around. There is a reason for that. Any successful debt plan absolutely must have a budget. You just can’t do it without a budget.
The reason is you need to see where your money goes. Then, and only then, can you see how much money is available for your debts so help you do what you can to pay them off as quickly as possible.
Read more: How to Create a Budget (Even if you don’t know where to start)
4. You are easily distracted.
If you turn on the TV, go online or even pick up a magazine you are constantly being shown ads. Retailers are trying to sell you on their item and telling you why you can’t live without it. Sadly, many allow these influencers to affect their spending, forcing them further in debt.
You must find contentment with what you have. You might also want to be like your neighbors, but how do you know that they are not as deeply (if not further) into debt than you are. Find a way to be happy with your life and don’t fall into the trap that “things” will make you happy and leave you feeling fulfilled.
5. Your plan is not realistic.
As much as we’d all love to pay off hundreds (if not thousands) towards our debts each month, that is just not possible.
You need to be completely honest with yourself when it comes to your plan. You might think that you can eliminate clothes from your budget and just not buy anything new, but is that really going to work? Can you truly not spend anything on clothing — ever?
6. You don’t have an emergency fund.
Your emergency fund is mandatory when it comes to getting out of debt. Why do you ask? Well, if you do not have an emergency fund, what happens when the air conditioner needs to be repaired? Chance are you will go further into debt to get it fixed.
Make sure you have a minimum of $1,000 in the bank before you even think about trying to tackle your debt. That way, when the unexpected happens (and trust me, it will), you can pay for it without having to rack up more debt and end up throwing your debt plan out of the window.
Read more: How to Create an Emergency Fund
Once you change your attitude, outlook and spending habits, you will be on the path to financial freedom and quickly be on the road to getting out of debt.