Changing Your Mindset

The article may contain affiliate links from our partners. Our reviews are not impacted and opinions are our own. Learn how we make money to support our financial wellness mission.
  1. Make a commitment to stop borrowing money. The first step in digging out of debt is to stop adding to the debt. This may require changes to your lifestyle especially if it is funded through credit. Put the credit card away and start saving money.
  2. Organize your debt. If you don’t know how much you owe or whom you owe, it’s difficult to create a plan to pay off debt. Organize and analyze your debt from credit cards, personal loans, home, and car loans.
  3. Prioritize debt repayment. Make a conscious effort to cut expenses and focus your attention on paying off debt. Every decision made around money should be filtered around debt repayment.
  4. Make extra cash and pay towards debt. Supplement your income by selling items you don’t need, get a part-time job or perform side hustles. Use the extra income to make additional payments towards debt which reduces the amount of interest paid.