A common roadblock is just knowing where to get started. Simply put, getting out of debt is paying more than your minimum every month. However, that proved to be much harder for me and I struggled over this concept because putting an extra $50/month towards a loan was good, but not enough. I needed more than that, but where do get more than $50/month if your paycheck isn’t magically going to increase?

Unhesitatingly, yes! It is so worth it. In the last episode we talked about why it’s important, but is it worth it? From a self-worth perspective, getting out of debt is easily in my Top 3 of major life accomplishments. Sometimes the worst experiences in life are often times the best teachers because of how they shape us and help us grow into better people. If you allow it for yourself, I think you’ll find many wonderful life lessons along the way that will change you for the better.

There are a lot of reasons why this might be important, but for myself, getting out of debt was important to me so that I was no longer burdened every time life was turned upside down. Going along with the last episode of how do I get out of debt with no job... well... being unemployed with a mountain of debt constrains how far you’re able to stretch whatever income you do have.

The answer to this will vary greatly depending on individual situations. My experience of being unemployed while still trying to pay off debt was tough and everything was reduced down to paying only the minimums until I could sort everything back out. I have a follow up question... Does no job also mean “no money?”

A low income certainly makes us squeeze if we are trying to get out of debt. The good news is that it’s not impossible, but it will require some thought out sacrifices until your debt is paid off. Just remember, getting out of debt with a low income only means it might take a little while longer is all. 

You bet it will! There are two things that impact your credit score greatly: 1) Being on-time with your payments and 2) Using only a small portion of your credit line. The more you pay down your loans and get out of debt, the more you’ll improve your credit score naturally.

I’m going to assume that you have bad credit because you had a rough go at paying back some borrowed money. Which might make it seem like history might repeat itself, but the good news is that paying off debt doesn’t require good credit - only borrowing money needs good credit.

A credit score is basically a ranking system that tells lending companies how well you handle money that doesn’t belong to you. There are a bunch of things that affect your credit score such as: on-time payments, usage, average age, number of accounts, inquiries, and derogatory marks.

So much of this comes down to your ability to recognize the struggles and the fears that you have and addressing them one by one. You’ll be stopped dead cold in your tracks every time if you’re unable to get over the barriers that are there. We won’t be vaulting over hurdles, most likely, but we’ll be more willing to try.

Write down the positive things that are happening in your life everyday. Training your brain to see the positive will go a long ways in your ability to roll with the punches. Also, finding trusted outside perspectives can help us see the bigger picture.