You Need a Game Plan to Get Out of Debt

• Procrastination only makes situation worse
• Even small steps make a difference

Paying off debt can seem insurmountable. But that debt can prevent saving for retirement, prevent homeownership, and negatively affect overall financial security in addition to lots of stress.

The more you procrastinate the larger the debt grows with compound interest. Start today to set a firm plan to reduce debt.

1. Get Organized
Understand how much you owe to whom and what the relative interest rates are. Start with a spreadsheet listing all your debts from highest to lowest interest.
Focus on eliminating the highest interest rate debts first.

2. Commit and Take Action
Get family members to support and participate in the effort.
Unless you are single you need to recruit other family members to join the effort.
Change your perspective from negative to positive: you can accomplish this goal. You are not a bad person because you have debt; you have lots of company but that's no excuse for ignoring what is best for you.
Set up automatic payments to pay down the debts.
If you have medical debt, try to negotiate with the provider BEFORE the debt goes to collection.

3. Set SMART Goals and Reminders
Make the connection between your long term financial goals and why you want to pay off your debts.
Set SMART goals: specific, measurable, attainable, realistic & time-specific. 
What picture visually represents your goals? Pick a picture and place it on your mirror where you will see it each morning. Pick another visual to keep in your wallet where you will see it before you spend.