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Getting Out of Debt


Heavy Burden of Debt

If you’re currently dealing with that gut wrenching feeling of being in debt and not seeing a light at the end of the tunnel, we are here to help shine the light for you.

 

The most impactful first step to getting out of debt is to cut up and cut off your resources - aka your credit cards. We know it hurts to hear, but it's only further exacerbating your issues if you keep having the option to make purchases you're not paying with available cash.

 

It's time to get seriously focused...perform an audit of your credit cards and write out which ones have the highest balance to least and focus on getting the ones with the highest amount due paid off first and then work your way through the rest. You will feel INCREDIBLE when you hit your goals - we promise 😉

 

If your approach has been to just pay the minimum amount every month, you are simply making those credit card companies rich! Taking the approach of paying the minimum possible is simply digging yourself into a deeper hole in the long run; you’ll never get to the point where the balance is zero. 

 

If you’re in a boatload of debt, you need to seriously sit back and consider what you’re purchasing. Sure, a company may advertise a seemingly great deal of 'simply make 4 payments of $XX’ with no interest, but if you don’t have the money to purchase the item outright, you’re really not in the position to make the purchase.


I Want It List

We have an interesting idea’ to consider when approaching something you want to buy. We call it the “I Want It” List.

 

Maybe you set a price point on this category of $100 or less. Anytime something comes up that you want that’s $100 or less, go ahead and stick it on the list - it can be a virtual list on the ‘Notes’ App on your phone or maybe a physical one you’ve got on your cork board in your office. Here’s the interesting part - you’ll want to mark the date in which the item was placed on the list, and if after 90 days have passed, and you still want it, go ahead and get it!

 

A lot of times what happens is in the moment, whether it be from a really compelling ad you see or word of mouth from a friend, you mentally get set on wanting something. But it’s usually fleeting! I can attest to adding something to my ‘Wish List’ on Amazon because I saw and ad and then when I go back and look at my wish list weeks or months later, I think to myself…"why did I even want this?? This is silly", and I go ahead and remove it. It really helps give you perspective to not be able to impulsively make purchases. And especially if you’re one of those folks who has a hard time boxing things back up and sending them back for a refund…we think the ‘I Want It’ list is a great idea for you.

 

We know that it can feel discouraging or embarrassing to admit you're carrying debt, but we want you to know it's possible to make big strides in eliminating it.

 

Please set some time on the calendar below to discuss you overall financial picture with us and we'll provide you with a roadmap to a prosperous and debt-free life!




Your Compass Financial Team

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