How to Get Out of Debt Series Part 1: Why should you get out of debt?

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How to Get Out of Debt Series Introduction:

Whether you have debt or not, having your own debt strategy is key. If you want to pay off your debt, pay it down, or simply become more strategic with it, I hope you will enjoy reading this 5-part series. For too long, getting out of debt has been talked about in an overly-simplified way and it’s not working for folks like you. A lot of financial experts do this because they think you can’t handle complex situations or that you can’t think critically about your money. I beg to differ. In this 5-part series, I aim to address your debt from a few perspectives so you can devise a strategy that works for you.

Why should you get out of debt?

What if I told you that while getting out of debt tends to be the thing you think you want, it’s not the actual goal you have?

Debt can be problematic for, yes, and you may want to prioritize paying off or down your debt in order to be in a better position.

But that better position is the goal, and getting out of debt is simply the method.

In other words, getting out of debt is a strategy that may be necessary in order to achieve the actual goal you have.

I realize this is a pretty big shift from how most financial experts think about debt and how it’s talked about most commonly.

What I have seen and heard from working 1:1 with clients for 15 years is that when you shift our perspective on debt the transformation is powerful.

All too often, when someone has the goal of paying off debt, they think about it through the lens of running away from the debt or running away from the bad situation they think they’ve put themselves in.

But what if paying off debt was more about what you are running toward?

You may read that and think, “Isn’t it the same thing?”

I promise it’s not.

When I meet with my clients, there’s one thing that I, as your money coach, is seeking. I am always looking to design the financial strategy and plan that creates the most buy-in for you, the client.

Your buy-in — your desire to work the plan and get results — that’s everything.

The difference between “running away from your debt” and “running toward the future you desire” is the difference between you getting out of debt based on fear and shame versus you feeling inspired and excited about your vision for the future.

The latter means you’re getting out of debt because you see it as simply a step in the process of achieving your bigger, more exciting goals in life.

Ask yourself if you are getting out of debt with the thought, “I have to do this or else,” or, “Debt is bad. I’ve got to clean this up.”

OR

Ask yourself if you’re getting out of debt with the thought, “I want to do this because my future is mine to create!”

It’s the difference between obligation and desire.

It’s the difference between fixing past problems and striving for more for your future.

Do you want to pay off your debt because you made mistakes and feel like you’re bad with money?

Or do you want to pay off your debt because your life is good, and you want it to be great?

Do you want to pay off your debt because you’re thinking of the past and feeling shame and embarrassment about how you got there?

Or are you paying off debt because you and your future are worthy of more, and you know that debt is not a part of that future?

Think about all your previous attempts to pay off your debts up until now. I’m guessing it’s filled with a lot of thoughts like “we should” or “we have to” or “this debt is killing us” and feelings of shame, frustration, or guilt surrounding the debt.

I bet it’s all heavy.

Heavy and exhausting.

The result is a vicious cycle of making progress on the debt for a short period of time, then something happens (maybe a car repair or that soccer registration you forgot all about), and your debt creeps back up again.

Making decisions with desire is a much more sustainable approach.

And it’s way more enjoyable and fun too.

Helping people pay off or pay down their debts is just one of the top 3 reasons my clients come to me. My approach is very different, which is why it works.

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