How to get out of Debt – 5 Life Hack Tips

Last time, we started a new series to end debt now.  Have you evaluated how much you owe to start with?  If you haven’t, then go back and read that post before continuing here.  That post, has some prompts to help you check where you owe money and so on.

Today, lets take another step forward.  We have 5 life hack tips on changing your financial situation away from debt.  

We have also consulted the experts in writing this post for you and we know we will all benefit from it!

get out of debt

##1 Evaluate your debts

Once again, we are re-iterating knowing how much you owe.  Ignoring your debts or wishing it away are not strategies that work!  It can be depressing to open the red letters to find out you owe £10k.

But not having an idea of how much you owe is only delaying the pain further down the line.  This can lead to people being depressed over their debts.

So work out how much you know. Because invariably if you do not know how much you owe, you may not even be paying it off, or paying it off in an efficient manner.

Also the reason why people ignore their debts, is the belief that they will never pay it off.  Never say ‘never’.  

The reason you are reading this post is because you have hope that you will pay it off one day, so listen to that voice and not the one that tells you that you are sunk for life!

##2 Change your relationship with money

You need to forgive yourself. Sometimes many are riddled with guilt over their financial decisions.

Overcome all the emotions – guilt, fear, anxiety, shame with meditating on the Word and/or inspirational things that will encourage you, that will tell you that you are NOT a failure. That it is NOT over.

Next, someone said attitude determines altitude. The same applies to money.

To soar with the financial eagles, you got to develop a good relationship with money. You got to see money as an ally and not an enemy.

People often say money is the root of all evil. Well that is misquoted from the Good Book which says ‘the LOVE of money is the root of all evil’.  Money is NOT evil.  

Respect money and money will respect you.  Have a great relationship with money but don’t make money your god!  That is what that quote means.

Because when we make money our god or idol, we are handing over control of our life and happiness to money.

Once you change your relationship with money to that of a positive mindset, start adapting those new beliefs about money which will also include how you spend money.

Don’t console yourself that everyone you know has debts. That may not be true.

And remember if 99 people say 1 + 1 = 3, and 1 person says 2, the majority does not prove the correctness!

##3 You need a plan

Someone once said if you fail to plan, you plan to fail.  Once you have evaluated how much you owe, there has to be a plan on how you are going to pay off the debt.

Obviously, we are assuming that the GOAL is to pay off the debt. There has to be a goal before the plan. How are you going to pay off the debt? What is the time frame? Here are some things to think on:

Are you going to consolidate all your debts?

Are you going to negotiate with the credit card companies or move credit card companies to find cheaper interest rates?

Are you going to pay the minimum amount and slowly increase this?

Are you going to make additional payments?

Are you going to take up a weekend job for a short while to pay off the debts?

Can you monetize your hobby?

What are you going to do besides not paying it?

Write these plans down. Do your Mathematics. And keep to them!

##4 Change your priorities

This follows from your plan above. If you have a plan in place, you can easily change your priorities.

Here are some pointers to think on:

Do you need the latest iPhone?

Is that holiday more important than paying off the debt right now?

Why take a loan for a new car when there is already mounting debt? You need a car because you got to take the kids to school right?  But does the car have to be the latest model?  Does it have to be a gas guzzler? Once the neighbors have seen the latest car, and you are paying off the debt, how happy will you be?

Do you need 2 cars instead of 1 in the family?

Can you move into cheaper accommodation, say for example if you are renting?

Are you going to make any sacrifices to pay off the debt? E.g. reduce eating out from 4 times a month to maybe once a month.

Remember point 2 – change your relationship with money. Don’t be a slave to money. Instead make it your slave.

##5 Celebrate milestones

Celebrate each milestone, no matter how small they are.  There is something about this principle, it spurs us on, cheers us to continue till we get to the finish line.  

When we are tempted to feel anxious, the celebration tells us we have come far enough and can’t stop now.

So celebrate the milestone; write it down in your diary or journey.  Put a tick next tothe item in the plan you devised in points 1 and 3.  

You can see the light at the end of the tunnel.  No matter how dim or faint that light is, it tells you that the light means the end is in sight!


Here are some useful links that may help you deal with debt:

UK National Debtline

Consumer Counselling Credit Services

Congratulations. Please share how you overcame debt below or on any of our social media platforms. Thank you!

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