If you have accumulated a lot of debt, it means that you don’t see debt as financially dangerous. You have made decisions that put you into debt. Decisions you didn’t have to make. Again, you may want to argue with me on this point. Don’t waste your time. This is not about my financial situation. It is about yours.
You must accept the fact that most debt is bad for you. You must develop a loathing for debt.
There are a few exceptions: mortgage debt and business debt.
The reason you are in debt is because you did something you should not have done if you had the proper hatred for debt.
Did you refinance your home when its value soared eight or 10 years ago?
Or did you buy cars and TVs and appliances on credit?
Did you leverage your investments?
After accepting the danger of debt, the next step toward fixing your financial situation is to get rid of every credit card you have, as well as any credit you have with your bankers. Use cash or debit cards for your shopping.
Yes, that means there will be lots of things you can’t buy every month if you want to be owing less
That’s a good thing, not a bad thing.
If you have a lot of existing credit card debt, you need to consolidate it. Then work with a professional to pay it off at reasonable interest rates.
And here is the big one: If you are lucky enough to have equity in your home or in your cars or in any other non-appreciating assets, you should sell them and buy something cheaper.