Getting out of debt is one New Year’s resolution I can support.  Getting out of debt is a plan to change your circumstances by taking control of something that is entirely within your control. Go for it!

If the idea of tackling your debt appeal to you, here is a process to help you.

Step One – Get Real

How much do you owe?  I know it is an uncomfortable question but until you confront the truth you will not be motivated to solve the problem. That is all it is, a problem. Don’t judge yourself, just solve the problem.

List all your credit card bills and loan payments.

List your non- negotiable monthly expenses, rent or mortgage, phone, utilities etc.

Don’t worry, I am not going to tell you to give up your daily latte, not yet.

At this point all I am asking you to do is get real.  Money for many of us is a trigger for many conflicting and unpleasant emotions.  These emotions can stand in the way of knowing what is true.  Not recognizing what is true is a sure way to mess up your life.

I guarantee some of you are busy telling yourselves, “I can’t (fill in the blank with something you want) because I can’t afford it.”

Some of you will be wrong. Some of you believe you can’t afford it when, with a few minor adjustments, you probably can.

Others of you are probably right. When you get clear about your financial reality you will discover not only that you can’t afford something you want or even need, but, more importantly, why you can’t afford it. Once you see clearly where the gaps lie, you can begin to make a plan to close those gaps.

Start with a Resolution

The hard part of this first step is getting around to it.

Making a resolution now to complete this task before the beginning of February might be a good way to dispose of your new Year’s resolution.

Do it Now- or Soon

List all your credit card bills and loan payments.

List your non- negotiable monthly expenses, housing, transportation, food.

Lastly, consider your spending habits. What is the truth of your expenses?  Where does your money go?  Find out the truth and don’t flinch.  Whatever the reality you uncover, accept it with compassion for yourself and pride in your willingness to experience a bit of discomfort as you set out to change your circumstances.

This is it for Step One.  This is a big, difficult and emotional step.  I promised a process for paying off debt, you will find that here.  But don’t rush ahead.  Do step one first.