Proverbs 21:20, "There is a treasure to be desired and oil in the dwelling of the wise, but a foolish man spendeth it up." There is a saying that "a nuh the same day leaf go a water bottom it rotten." Similarly, debt is something that builds over time. Therefore, coming out of a financial rut requires careful planning and considerable time.
1. Make a list of all your debts.
2. Make a consolidated list of all your debts so that you can know what you owe.
3. Make a list of your debts by priority. That is what must you pay back first.
4. Make a plan to pay all your creditors, even a minimum amount. Acknowledge that you owe and explain the difficulty you are having, but show good faith by paying something.
5. Look at your assets. Make a list of those things that are necessities against the wants. For example, a car is not a necessity. It may make sense to sell the car and start taking the bus. Of course, this decision must be measured against your reality. So if you need the car to do a second job and without a car, taxi fare will surmount the loan re-payment then this option may not be plausible.
6. Condition your mind to give up all luxury items for one year. Place a value on those things and save money every month that can be used to reduce your debt.
7. Learn to cut your loss stop throwing good money after bad. If your investment keeps costing you without making any profit, call it a loss and walk away. It is better to lose $10 than $100.
8. STOP BORROWING!! Learn to do without. Live within your means.
9. Last but not least, give to God what belongs to him and, he promises that he will open the windows of heaven, that there will not be enough room to receive it. Slowly but surely, your debts will decrease and one day, you will be debt-free.
The way forward is to learn from your mistakes. Start treating yourself but continue to save on luxury items. Treat your assets and resources as if you are managing them for God. What a difference this will make in your life and the lives of those with whom you interact.
My name is Serena Richards and I, along with other helpful contributors, and of course the inspiration of God have written these posts as a source of help FOR YOU <3