“On a basic, fundamental level, the problem is created by spending more than you make,” says Brad Stroh, co-CEO of the San Mateo, California-based Freedom Financial Network, LLC, a company that specializes in debt resolution services. Why People get Into Debt?
How to Get Out of Debt Fast 1. Get out of Debt Fast #1 “The only way to guarantee solid financial footing is through proper planning—and that’s where most consumers go wrong,” Stroh says. “Proper planning means monthly budgeting of cash flow, combined with saving for long-term security.” Stroh recommends saving at least 5% of your income to ensure long-term financial security. “Of course, this percent will vary by age group and the individual’s financial goals and objectives,” he says. “Younger people can expect to spend their early years saving less of their income, paying off student loans and debts incurred during periods of lower income. Older individuals should be planning for retirement and saving a larger share of income.” 2. Get out of Debt Fast #2 If you are facing financial hardship, do not procrastinate when it comes to seeking professional advice. “People often wait too long,” Stroh says. “If someone is living paycheck to paycheck, is behind on any revolving financial obligations (including credit cards), is using credit cards to pay for necessities, or is facing collection, he should consider getting immediate advice from a professional debt management firm or financial advisor.” 3. Get out of Debt Fast #3 If you continue to spend money, despite your ever-growing debt, you likely have a bona fide addiction that requires psychological intervention. People with spending addictions constantly strive for the ‘high’ that they receive from buying clothes, cars and other goods. This leads to a long-term problem when they cannot meet the consequent financial turmoil that comes when the bills arrive.
4. Get out of Debt Fast #4 If you’re like many consumers with outstanding debts, the last person you think about speaking with is the creditor, the company you’ve been avoiding at all costs.
5. Get out of Debt Fast #5 Many consumers who recognize and even accept the fact that they have a spending addiction refuse to address their problems, according to Stroh. You have to start by conquering your denial today.
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