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Free Debt Coaching: How to Get Out of Debt

Getting into debt is one of the easiest things in the world to do. Getting back out of debt isn't as easy as getting into it, but certainly is not an impossible challenge that you'll never achieve. So if you've found yourself with mounting debt, check out these free tips for getting yourself closer to debt redemption. They will help you see that you have options and opportunities all over, that you can take advantage of, to help you get debt free.
  • Be Realistic: It takes at least as much time to get out of debt, as it took you to accumulate that debt. Avoid dissappointment and a loss of motivation by understanding that it can take 2-10 years to get completely out of debt, depending on your unique debt situation. With that knowledge, you need to sit down and make a realistic and time oriented plan for paying off your debt. This will be one of the best tools you can use to manage your debt and budget.
  • Pay Earlier: Stop making excuses and make your life easier by paying your bills earlier. There are no written rules anywhere, that say you have to wait until the bill is due, before you pay it. And by paying your bills before they are due, you'll be saving yourself thousands of dollars in late fews and higher interest.
  • Pay in Portions: If you unable to pay everything you owe in full, and you end up broke by the time the bill does come around, then break it down into smaller portions. Pay half or even a third of the bill, 3-4 weeks early. Then make another payment in the middle of the month and then at the end. You would be amazed at how much stress will disappear from using this tip.
  • Plan Your Budget: This is a Life 101 type skill, and it's as simple as taking your income, and allocating it out every month, so that you know exactly where your money goes, when it goes and where you need help or improvement.
  • Pay in Small Amounts: Some of your debt is probably past due, and doesn't continue to occur every month. Old credit cards and loans would fit into this category. These types of bills may not be recurring, but the interest and late fees on them are, which means that the sooner you can pay them, the better off you will be. These are often some of the easiest debts to pay of, but also the ones we attach the most negative meaning to. The truth is, that with old debts, you can pay them off in very small amounts. $10 per week, $50 per month or just about any number. Recognize that no amount is to small, and that it's an important skill for you to build, to pay even when it doesn't seem like much at first.
  • Get a Payment Plan: If you haven't already used up this option, then get on the wagon and get your service providers and debt collectors to put you on a low monthly payment plan, to spread your debt out. This will make it easier for you to catch up, will avoid late fees and help you keep your home running smoothly.
  • Open a Savings Account: Do this EXACTLY: Go to your bank and open a new savings account. Then ask your favorite teller to do you a favor, and subtract 10% from everything you deposit into your bank, including your paychecks, and to add that 10% into the savings account. Then make sure that you do NOT have access to your savings account from your debt card. The reason you need to do this, is because when the money is in your hand, wallet, pocket or even under your mattress, it WILL BE SPENT. Don't beat yourself up for lack of will power, we all do it. Instead, empower yourself up for success by making sure that 10% is pulled out before you even get a chance to see the money in your account. Then make sure that you leave that money there, unless you have an emergency (like someone dies or is seriously injured kind of emergency), and even then you should avoid dipping into your savings. This savings is going to rebuild your budget and allow you to pay off your debt, but it will only be worth it, if you allow your savings to accrue interest as you add to it. This can take 6 months to 2 years to be effective, but it is the FASTEST way out of debt for the least amount of cost to correct everything. Even if you only make $1000 per month, and you're only putting $100 per month into your savings account, that $100 per month will soon turn into $600 save, $1200 saved, $2500 saved, and that is WITHOUT the interest, which can add as much as 40% of what you've put away. After 5-6 years (which goes by faster than you think), that savings will be able to pay off any debts that have been on your name, or will be there when another "trigger" comes a calling.
  • Change Your Payment Dates: At one point in my life, I found myself overwhelmed with debt,  because I hadn't taken charge of the dates of when my bills were due. Most of them piled on top of my income at the end of the month, but there were just enough at the beginning of the month, to take everything I had, leaving me broke until that next paycheck, which would then all go into the end of the month bills. After shutting off some unnecessary bills for a while, I then called my service providers, and asked to change the date I would pay them. I set it up so that I had 2 bills each week to take care, which broke down my 8 "must have" bills, and made it easier and less overwhelming to keep up with my regular debt. Setting all that up was as simple as an hours worth of phone calls. You can do it to, and I suggest that you do.
  • Ask for a Raise or a Promotion: Stop making yourself nervous with possible rejections you could experience. If you have a job, ask for a raise or a promotion. If they say no or not right now, ask them how you can make it happen.
  • Overtime and Side Jobs: These are great ways to get some extra cash injected into your income to pay down debts and keep bills on track.
  • Invest in a Debt Coach or Life Coach: Investing in a Debt Coach, Business Coach or Life Coach, is like investing in yourself. It is your coaches job to make sure that you get out of debt, attach positive and logical meanings to your current circumstances, and to see that you master the fundamental skills of success, so that you don't find yourself in the same situation again. Most coaches of any niche, are trained to help you out of debt, though your best bet, is to find a coach that you really feel comfortable and connected with, and whom preferably has been through the experience of overcoming a large and overwhelming debt. Keep in mind also, that you don't want to spend more on your coach than you can afford. Coaching is well worth the price that coaches charge, but when you're in debt, you want to be conservative about new expenses. Thankfully, most coaches like myself, offering sliding scale fees for clients who need help now, but may not be able to afford coaching immediately. I usually offer my sliding scale clients the opportunity to pay me a small percentage of their income. This means that my pay depends on my ability to get my clients back into shape and out of debt. Every step of coaching that helps them earn more, save more or pay off more debt, means an increase in my compensation. I am already motivated to help my clients to the fullest, though it's a rewarding experience to see their income and my own, increase over the months. Going from being paid $20 per month, by a client who is overwhelmed, unhappy and in heavy debt, and seeing their income and confidence increase, and their debt decrease, so that I am soon paid $600 per month, is an amazing transformation to be a part of.

This article is brought to you by Strategy Life Coaching, contact us today to get in touch with your ideal Debt Coach!

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