The Cycle of Debt: Part 3 – Get out of the Cycle

Kyle Crowe

August 27th, 2015 | Posted in Money Tips

If you haven’t read parts 1 & 2 of this 3 part blog, go back! For Part 1, click here. For Part 2, click here!

Now, How do you get out of this cycle of debt? This is the most difficult part.

Start with setting a goal- Make a goal and stick to it. “Think little goals and expect little achievements. Think big goals and win big success.” –David Joseph Schwartz. Set the goal to get out of personal debt and hold yourself accountable for it. Whether the goal is to be debt free in 6 months or 2 years, the more specific the goal, the better. That way you know just what you are working towards.

Pay more than minimum if you can – Your extra payments will typically go towards principal which will lower the amount of interest you pay during the life of the loan. This is most beneficial to do at the beginning of the loan where more interest is normally accrued.

Budget accordingly so you don’t have to turn to another loan– This might mean changing your habits. Get out of the mindset that you can use pay day loans as crutches. They are expensive and won’t help in the long run. Next, live within your means. Get rid of expenses that you don’t need and don’t spend more than you make. For more tips, click here!

Use bonuses and your tax return for paying off debt and loans– Start with the past due one. This might be a hard thing to do because it would be more fun to spend them on things you want, but don’t! Use these to pay off debt and you will have more money throughout the year to spend.

Make sure that your regular payments are being made- Defaulting on loans will only add fees and more interest. If you can’t make your payment with your regular check, there are other ways to get cash to make up for it. Here are some easy ways to earn extra cash!

The Cycle of Debt can be a difficult thing and we hope these blog posts have been beneficial. Here at Lift Credit, we offer lower rates than other companies in order to help you get out of these tough situations, not make things worse. We realize sometimes people need cash, and that there are situations that call for quick loans – which is why we exist!