I spent 14 months getting out of debt, only to find myself right back in a similar place about a year later.
You have to be more aware of the money that’s going out because you’re no longer using debt products to fund your lifestyle. I never thought about my life and finances after paying off debt. For me, being debt free was the ultimate goal and I couldn’t wait to buy all the things I previously couldn’t afford.
If you’re back in debt after swearing off it, here’s a strategy for paying it off for good.
Find the Root Cause
Debt is just a symptom, but of what? You’ll have to find that out for yourself, but it’s likely a lack of discipline or motivation, a mindset barrier, or even simply not paying attention.
A great way to determine the root cause of your debt redux is to challenge yourself. The point of a period-specific challenge is to assess your priorities and review the cause of the core problem with debt. And at the end of one of these challenges, you’ll understand why you’re back in debt again and how to avoid it going forward. Pay Attention to the Financial Signs
Your finances require constant attention to make sure you’re handling them properly. Create a spreadsheet, or check out one of these debt repayment plan tools, and schedule an ongoing session in your calendar.
Don’t view getting out of debt as the end goal.
Think of being debt free as a long-term goal that you work toward and accomplish for the rest of your life. Choose to make decisions based on staying debt free. How can you meet your goals quickly without depending on a financial institution?