It’s a myth that creating a habit only takes 3 weeks. It takes a lot longer, especially with the habits that are deeply engrained within us. Start slowly and put things in place to help you become accountable.

Getting out of debt deserves a celebration! Whatever that might be for you, but going somewhere you’ve always dreamed of (being debt free) and having the trip paid for sounds like a great reward!

While I’m not at all suggesting this so you can compare yourself against others, but rather know that you’re not alone. That there are others how there who can relate to you and more importantly, reassure you that the you too can do hard things. That you too will become better because of it.

Creating some type of visual reminder is a great way to keep in the front of your mind what your goals, dreams, and aspirations are and how debt is not going to help you get there, and instead, slow you down.

This is really really tough because we want or wish so badly that our situation was a little more like that of someone else we probably know. Just remind yourself that you can only work with what you have access too. And that’s okay! 

It can be hard to see the light at the end of the tunnel some days. Reminding yourself how far you’ve come and where you want to be are great ways to keep focused. You can keep a journal of your journey and create a vision board of things you want once you’re out of debt. 

Some states still use jail time to encourage you to pay debt. Some states allow debt collectors to chase after you for 4-6 years. Not to mention, you’ll be financially ruined and branded. Rebuilding your life after avoiding debt may very well feel impossible. 

The magic number for this has been defined at 36%, with the max being at 43%. 36% DTI gives you some wiggle room for changes in your income. Debt included in this is for any money that you owe: Mortgage, car, loans, etc. Income your gross monthly income. DTI = total monthly debt payments/gross monthly income.

Good debt are loans with low interest rates and often considered as a type of “long-term” investment. Such debt would include mortgages, car loans and student loans.

The simplest way to look at this would be anything with a really high interest rate. Such as credit card debt, personal loans, or payday loans.