When I was really, really in debt, I signed up for consumer credit counseling and tried the whole consolidate your debt thing.
It was a nightmare.
The thought that you can let someone just magically take over your debt accounts and get out of debt that way dismisses the most important process of getting out of debt:
changing how your brain interacts with money.
I didn’t want to think about my debt problems. It seemed so much easier to just let this company handle it for me, and I would just pay them every month.
Well, that lasted 3 months before I couldn’t keep up.
A few months later, I went bankrupt.
So, what was the lesson?
The lesson I learned is that the only person who can help you out of debt is:
You.
Yep, you. You have all the tools to help yourself get out of debt. You can consolidate your credit cards with a loan from Lending Club. You can workout lower interest rates with your creditors. If you are just too underwater and need a fresh start, heck, that’s why you get one do-over (bankruptcy).
But if you try to outsource getting out of debt….it won’t turn out pretty.
Want real debt help?
- Get a debt battle buddy. Layout all your accounts with a trusted friend and get their advice and accountability
- Track your spending down to the penny. Write down every single purchase you are making. I did this when I was really broke and it helped me really see where my money was going. Or just use Mint correctly.
- Get a 2nd source of income. Clean houses for your friend (oh, you’re above that? Get real. I know a friend that is doing this to get out of debt). Pickup extra shifts. Once you’ve cut expenses, you need to bring in more dough.
- Eat healthy. Live healthy. Go for a run, or walk (100% free!), and your chances of medical bills drop like a rock.
- Stop making stupid money mistakes
What am I missing?
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