Why You Can’t Seem to Get Out of Debt

Everybody is selling something — and I mean everybody!  We are being bombarded to purchase something in every billboard, radio, TV and online advertisement.  This is capitalism at its finest.

The spending culprit. Without a Spending Plan and all the enticements to buy, it’s no wonder we continue to sink ever further into debt.  Marketers study human behavior and know just how to push your buttons.  If they don’t get you on the Internet, they will over the radio.  If the radio doesn’t work, then perhaps their newspaper advertisement will grab you. How can we possibly stop the insanity?

The solution is to first, learn how to control your emotions.  This is not possible without a Spending Plan. Let’s say it has taken you 18 years to get into the various debts you have.  It will not be possible t get out of all those debt in a decent amount of time without a plan and then the disciplined action that must follow that plan.

With a Spending Plan, you can learn how to create a cash surplus each shutterstock_254497954and every month (which comes from learning where you are wasting and inefficiently using the money you already make). With a Spending Plan and a cash surplus, you can then accurately predict when you will be able to get out of debt.

Sometimes it helps a person to know what the interest costs on their debt are going to be…this can help motivate us to stop over spending.  To see the power of knowing the real effect of interest, let’s examine an average family with six debts.  They will pay in interest expense alone $200,000.  If you could invest that money it would amass a small fortune of over $1,000,000 by retirement.  Most people would love to have $1,000,000 for retirement.  Yet, right from our own pocket we sabotage ourselves by not tracking our spending, not planning ahead of time, not wanting to know how much we over spend, not ever.

Once you have built a Spending Plan, as I mentioned above, then it’s time to create a Debt Plan that includes a “Get Out of Debt” report. This report will help you see how long it will take you to get out of debt if you just continue to over spend and how that time can be shortened by living by a Spending Plan that you track. When you track your spending you will naturally create a surplus that you can use to pay down debt much quicker. 

For more information on how to create a Spending Plan, contact me today.