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How to get out of debt
If you\'re like most Americans, you have debt. If you\'re like many Americans, you try not to think about just how much debt you have and what it\'s really costing you. If you did think about it, you might not sleep well. This is important in how to get out of debt
But ignorance never was bliss, and in order to get out from under the burden of debt, you need to face the uncomfortable (and perhaps downright ugly) truth: it may take you 30 years to pay off that credit card balance is quite important in how to get out of debt.
How can this be, you ask? You may have balances totaling less than $5000. Surely this will be paid off in no more than a couple of years. The credit card company wouldn\'t let you take so long to repay them, would it?
The answer for how to get out of debt is: yes, it would. In fact, if you took 30 years to pay off your balance, you would be the ideal customer.
How to get out of debt involves three steps:
1. Stop acquiring new debt.
2. Establish an emergency fund.
3. Implement a debt snowball.
Here’s how to approach each step. (I’ll use Nick’s situation as an example, but the principles apply to everyone.)
Stop acquiring new debt
(This step can be accomplished in an afternoon.)
This may seem self-evident, but the reason your debt is out of control is that you keep adding to it. Stop using credit is a key for how to get out of debt. Don’t finance anything. Cut up your credit cards.
That last one can be tough. Don’t make excuses. I don’t care that other personal finance sites say that you shouldn’t cut them up. Destroy them. Stop rationalizing that you need them.
You don’t need credit cards for a safety net.
You don’t need credit cards for convenience.
You don’t need credit cards for cash-back bonuses.
How to get out of debt >
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