Once you have decided it’s time to get out of debt, one of the first steps you need to take to achieve that goal is set up a debt payment plan.
Excessive debt can be a real inhibitor to financial wellbeing. It leaves you stressing about catching up and unable to have the flexibility to react to life’s financial challenges.
A number of steps can be taken:
- Identify your debts
- Rank your debts
- Review your budget
- Decide on a strategy
- Consolidate your debts
- Avoid taking more debt
Responding to debt issues and creating a plan to reduce or eliminate them is a major step towards financial independence. The sooner a plan is created the sooner goals can be reached.