Website design By BotEap.comThe numbers. According to statistics, almost 80 percent of adults in the United States have some type of consumer debt. Owing money seems to have become a way of life, although a surprising 70 percent of those in debt consider their debt burden to be undesirable. The question begs to be asked, “Why do people put themselves in such a situation of going into debt when they don’t want to?”

Website design By BotEap.comThe answer to the question is not simple and clear. In some cases, it may involve personal spending habits, while in other cases it may be related to a set of unforeseen circumstances. Either way, debt can cause harmful stress, and sometimes people can be quick to judge. Neither being stressed nor being judged is particularly helpful and can lead to depression, feelings of failure, and strained relationships, among other negative aspects. So perhaps a better question is: “What can someone in debt do to change their circumstances and find a way out?”

Website design By BotEap.comA jerk in different directions. It’s like raising children, there is no one “right” way to do it, but everyone seems to have an opinion on the matter. As a consumer seeking answers, it is very easy to get sucked into one field or another regarding which regimen to follow. There is no shortage of financial experts, books, and methodologies geared toward people who need a little financial wisdom. The problem is, many of the prepackaged debt settlement programs treat the journey to debt freedom as a cult-like religious pursuit rather than a progression toward financial literacy and financial independence.

Website design By BotEap.comRather than taking a “one size fits all” approach, it is important to consider debt, income, expenses, and financial goals in context with the person’s home, habits, and goals. There are two parts to the debt repayment equation: the math and the lifestyle of the individual. To be effective, any solution to getting out of debt must address both.

Website design By BotEap.comThe method. Math is the easy part. Mathematics is sterile. Mathematics is cold, practical. It is not influenced or affected by opinions or emotions. It is predictable, with no surprises. Unfortunately, however, it is also very misunderstood or perhaps intimidating to people who are not knowledgeable about mathematics or analytics.

Website design By BotEap.comTea Lifestyle part is the hard part. Anyone who has made a New Years resolution (and failed) knows exactly what that means. People have the best intentions to improve their plight in life, but along with the temptation and emotional ups and downs of triumphs and setbacks, people’s “wants” often win out over their “needs.”

Website design By BotEap.comBetween the two, finding a workable balance is essential. Here’s the meat and potatoes of a good, solid, and livable plan to get out of debt and start making progress toward healthy finances:

• Brainstorm and scale quantities. People are rarely successful if they make drastic changes or drop habits all at once. Small changes add up to big differences. Order the medium instead of the large. Turn the thermostat back two degrees in winter or turn up in summer. Find out what’s not being used, like landlines or premium TV channels, and scale down. Then calculate the monthly savings and, instead of spending it elsewhere, apply it to the debts.

• Create a budget. Creating a budget is more than putting planned numbers in rows and columns and then trying to stick to them. Budgeting effectively involves brainstorming ways to cut costs without reducing quality of life. It is an example of finding the Balance Between the Math and the Lifestyle. By applying savings from brainstorming and reducing amounts to debt repayment, the family budget allows progress to be debt free without drastic lifestyle changes.

• Redirect cash flow. Instead of directly depositing your paychecks into a zero percent interest checking account, you may want to open a high-yielding online savings account with 2% to 3% interest. Let the money increase the interest on the account and then move the money in batches once or twice a month to pay bills. The end result, simply by re-channeling the direction of cash flow, will add substantial resources to pay off debts effortlessly.

Website design By BotEap.com A few simple changes in habits can make paying off debt simple and easy without having to live on beans and rice at every meal. In most cases, minor changes that require little or no sacrifice will yield the benefit of reducing years and potentially thousands of dollars in interest on consumer debt.

Website design By BotEap.comAs a general rule, people adopt habits that do not deprive them of what they want. Therefore, a balance between math and lifestyle is the key to sticking to a debt repayment plan rather than systems that rely on brute willpower or require self-deprivation. Taking the time to improve financial literacy can make it possible to “have your cake and eat it too.”