It's not shameful to admit that debts have taken over your life. Many people have trouble achieving debt freedom and almost all of them have trouble prioritizing their spending. They all wish they had some kind of debt calculator, that will tell them how to manage their money and get rid of the money problems.
In this article, we're going to explain in short how to prioritize your spending. How to make your own debt calculator and move quickly to achieve debt freedom.
First and most important - the top of the list of priorities - is how to have more money to spend but still spend as little as possible. People struggling with debts think they have a money shortage and lots of expenses. This is partially true. Expenses can be shortened, but almost always the person in debts will need to get another job. Getting another income stream is very important. This doesn't need to be something stable and long-term, it doesn't even need to be something you're trained to do, but it must provide you with more income. It can be something simple, like a waiter or taxi driver and you can work until you have enough to close some of the debts.
At the same time, you need to make a detailed list of all your spending. See where the money goes and what can be cut. Even things that seem like not important can make a huge problem. Look for things like cigarettes, drinks and similar. These are not things that are necessary and you need to cut the list only to the most important.
Then, make a plan what will you try to close first. Focus on the most important, credit cards, loans, rents. If you're paying $5.000 for a big house, you should move to a smaller place and pay less rent. Then, cut your debts one by one. Get enough money to close one credit card first, then the rest. When you close one credit card, you'll see how easier it is to close the rest. Soon you won't need that extra job and you'll achieve complete debt freedom.
If debts are unbearable, selling is a smart option. Sell your expensive car and get a cheaper one. Sell everything you don't need. Lots of things drive money from your pocket while you can actually sell them to achieve debt freedom. Of course, you can't sell your own house because you need to live somewhere. In this case, there's the sell and stay option. With it, you sell your house but agree with the buyer that you continue to live in your own house. This way you'll have a lot of money to cover the debts and you can still buy back your house once you have the chance for it. Sure, you'll have to pay the rent each month, but nothing comes easy in life.
Make this debt calculator and stick to it. Soon, you'll live a better life.