It’s festive season, and with it comes the countdown to a new year. Everyone has had their fair share of challenges and moments of joy this year. Your major challenge may be trying to manage many financial responsibilities while still managing debt. As the new year approaches, you may have told yourself you will start the journey towards debt-freedom by then, or you don’t even know where to start. The journey doesn’t have to wait till the new year when you can actually start now and be glad you did. In this blog, we will go over how you can start the journey towards debt freedom and enjoy peace of mind.

Why Should You Not Wait Any Longer?

There is a false sense of responsibility that comes with wanting to start something in the new year. You’re in a euphoric state that tells you a new year comes with a new energy. But ask yourself, how many of your New Year resolutions have you been able to tick off? Even if you did, when you start getting used to the new year, do you still have that initial energy you started with? The truth is, an important part of any journey is the beginning, but nothing is more important than finishing and reaching your destination.

If you cherish the idea of being debt-free, if the thought makes you feel at peace, if you have imagined yourself having a good night’s rest without the disturbing thoughts of debt, then it’s a beautiful idea to start considering starting that journey now.

How do I Prepare Myself?

Preparation is important for anything you want to venture into. If you want to travel for an event, you have to fill up your tank and check your car well to be sure it’s in good condition. Before you start tackling high-interest debt or any debt at all, you need to understand how much you owe. Many people are overwhelmed to the point that they have lost track of their debt, or they are scared to even confront the real figures. If this is you, it’s understandable. However, you don’t go to a battle without knowing who your enemy is and how strong they are. If you go without the necessary information, you may see yourself underprepared.

You have to list out all your debt, credit card debts, personal loans, payday loans, etc. The number might be scary and you may feel intimidated, but don’t worry. No mountain is insurmountable. Many people have been in your shoes and are now debt-free today. Just have the exact figures with the interest rates and then you can move on to the next step.

What are Your Basic Needs?

If you were not paying debt, how much would you need in a month? Make a list of your basic needs (things you need to survive). If there’s a way you can cut down on some things, you can do so. But the idea for this step is to have a good understanding of how much money you need to take care of yourself throughout the month. Making a budget is important in this regard, this will help you prioritise the most important things while you place less or no priority on mere desires. This will help you have more money left to tackle debt and also have an emergency fund.

Debt-trigger Evaluation 

What are the things that make you borrow or make you overuse your credit card? Do you buy things on a whim? Do you get pressured? Or are you usually faced with emergencies? You need to understand why you keep accruing debt so you can see how to avoid some of them or prepare against them. For example, if you buy things without giving them much thought, you will need a little discipline or include anything you want in your budget when you can conveniently afford it. If you get pressured, perhaps you need to avoid your circle for a while till you’re strong enough to say no to such pressurising invitations. It’s all about preparing yourself so your debt can stop piling up.

Speak With a Debt Expert

This is an important step. After you have done the above, it’s time to get started with paying off debt. The good thing with this is; while you can pay off your debt on your own, another easy way is you may not have to pay everything on your own. The reason is that your debt can be reduced by up to 80%, and interest will stop immediately. This will not only lighten your burden, but it will also give you a free start with ease and convenience. Our debt experts at EmpireOne Credit are ready to help you on your way towards debt-freedom. You need not wait till the new year, all you have to do is place a call to (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!