Who wouldn’t want to get out of debt fast? Debt can be an enormous burden, one that weighs on you and holds you back from many opportunities. So of course, the faster you can change that, the better.
The only problem with that is, when your main goal is to get out of debt fast, sometimes you can lose objectivity or be tempted into things that aren’t such great ideas.
A classic mistake is to try to borrow your way out of debt — often by turning to a debt consolidation loan. It sounds like a quick and easy solution, but it rarely turns out that way. For one thing, you still owe the money. For another, because it doesn’t cause you to change your habits, you often end up going right back out and borrowing again — the same way you did before, except that you end up owing even more money.
Another mistake is believing that there are folks out there who can just make your debts go away for you without you having to do the work.
The only way to get out of debt is to pay what you owe, settle for less than you owe, or (depending on what debts you have) file bankruptcy. Of the three, paying what you owe is usually the best way to get out of debt fast — and you won’t have to worry about being taken by unscrupulous characters who may not comply with the debt relief rules.
If you really want to get out of debt fast…
You’ve got to do the work. Using the debt snowball method can work wonders, because it keeps you motivated and you usually see progress quickly.
You’ve also got to change your habits, and begin building up an emergency fund.
Maybe even more importantly, you’ve got to change the way you think about borrowing money. Break free of the debt myth, and not only will you get out of debt as fast as possible, but you’ll be free of it for good.