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Setting Goals to Manage Your Debt

The best thing about goals is that it’s so easy to set them; in fact, it is as simple as ABC. But the frustration begins when you start to work towards it. Have you tried setting a goal to repair your credit or pay off your debt, and then you just threw it all away?? With the right mindset and perspective, setting goals to manage your debt can be as simple as drinking a cup of water.

1. Set proper achievable goals
Don’t set a goal just for the sake of setting one. Set a fixed goal. A goal like “I will pay off my credit card bill ASAP” just isn’t good enough. What you ought to be looking for is “I will pay off $400 of my credit card bill this month and I won’t buy anything more on my credit card.” This way you have a clear idea of what you have to do on mind.

2. Make small steps out of your goal
Break down your goal into steps and draw out a plan to achieve your goal. A plan is just like a map without which you could easily get lost. So why not get to the highest point of debt management in the shortest time?

3. Fix some deadlines
If you want to make workable and efficient goals, it’s important you have a deadline by when to reach them. Since you have small steps, have shorter deadlines. These shorter deadlines will motivate you work ASAP.

4. Put your plan down onto paper
Write out your plan and put it on your bedroom wall or some other place where you can see it frequently. This will help you stay conscious of your goal and your need to reach it.

5. Record progress
Tick against the goals you have met so that you know how much farther you have to go. You can also write down increases in your credit score or by how much your debt has reduced. Always remind yourself and feel good about what you have accomplished and achieved.

6. Let someone know
Tell a close friend or your spouse about your new goal system. By letting them know, you will have someone to support and encourage you. You never know, they might even have some tips and tricks of their own which they would love to share with you

7. Celebrate achievement
As you keep increasing your credit core, feel good about it and pat yourself on the back. This will inspire you to keep going. But don’t use this as an excuse to add on some debt; so be careful how you celebrate!

Have a happy and debt-free life!

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