Alarm Clocked: How to get out of debt and being yet another statistic

The statistics regarding debt range anywhere from shocking to sad and everything else in between.

Then again, do we have anyone else to blame but ourselves for the mess we’re in?

Sure, you can argue that the cost of living hasn’t improved, food costs are high and everything else we spend money on has inflated and yet salaries have been stagnant, at best.

While all of that is true, you still should be alarmed about $15,000 (the average amount of debt per person), and $50,000 (the average amount of school debt per household). Those two numbers alone suggest that you are about $65,000 in debt on unsecured items, things that aren’t cars or homes that you can’t trace back to at a moment’s notice.

But despite the numbers being less than enviable, you don’t have to become another statistics, as cliche as that sounds. The truth is getting out of debt is more about changing your perception on how you look at money, learning to budget properly, live without for a little while and simply pay closer attention to income versus expenses.

The irony about those numbers is that while they’re discouraging, they don’t have to define how you are with money. They can be there, but yet still be accounted for and subsequently handed just by your day to day decision making.

For example, if you have $15,000 in debt, your game plan should be two things: patience and persistency. You should start with debt that has the highest interest rate and then pay it off more so than the others. You also can consider consolidation but only in order to shorten the time you pay on the loan or lower the interest rate by combining higher ones per line of credit.

Debt is something you just don’t pay and then forget about, but rather you should be constantly thinking about, pondering or wondering how you can be better at it, starting with stopping the use of credit cards altogether. Whether your rip them up, shred them or freeze them, you have to remind yourself that you days of charging are done.

And the argument that income isn’t keeping up with cost of living, well that is partially true. While the cost of goods rises each year, and your income might not keep pace, that simply means the onus falls on you to change how you budget. The truth is your income might not be keeping up with your wants more than anything else but admitting that can be tough.

Debt is what it is: you owe someone else money. But paying off your debt can be viewed as business as usual and as a means to an end. Those who see it as crushing numbers and all hope lost won’t have much luck whatsoever in paying it off completely.