Digging Yourself Out of Debt

My conversation with Award Winning Podcast Host and Best Selling Author, Marcus Garrett,  inspired this blog. It includes various perspectives and some of his story. 

A huge number of Americans are in debt and paying off interest on it. The credit card syndrome has hooked them into never ending debt but there are more than one ways to rack up debt. 
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These are:

• Student Loans

An increase in college tuition alongside the high intake of students into college making it hard to acquire a job without a degree, majority of students tend to seek out student loans which they later on have difficulty paying as they struggle to find a good job to help them pay off their loans. 

• Home Mortgages

Quite a good number of people have acquired homes on the basis of a mortgage, while others have been able to pay the house off, some have been forced to give up the house due to failure to to pay their monthly mortgage payment in return damaging their credit. 

• Credit Cards

These allow you to acquire what you want at the moment however in the long run you are acquiring debt you may not be able to control.The payment plan may offer a minimum fee per month however majority of people still cannot afford to make their credit card payments. 

• Lack of Money Management Skills

Despite having sufficient salaries, many young people's lack of knowledge on money management and investing has forced them into debt that could have easily been prevented. They earn a sufficient pay check at the end of the month however lack a saving or investing culture and end up drowning in debt over a certain period of time. 

• Gambling

People all over the world rack up significant debt now that online gambling sites are easily accessible, one can be tempted to get a loan with the hope of winning big on a gambling site. We all know how that goes at times and one is left with debt. 

• Poor Saving Habits

The idea of saving is one that has been greatly sidelined by the majority of people yet it is very basic, save money while you have it, so you can build up savings for when you're no longer working. Sadly, a few follow through with this. 


How Marcus Garrett found himself in $30,000 of debt 
Marcus Garrett racked up his debt through credit cards and personal loans. After graduating college in 2005 with $9000 in debt, he got a consolidation loan of $10,000 and he spent it, bought a car of $13,000, a flat screen of $300 bought a couple of bottles alongside other things. 

Within one weekend, Marcus had accumulated $30,000 of debt. 

At the age of 27, he hit rock bottom and this is when he decided to put together his first budget and built a 4-step system to reach debt freedom. 

Marcus formulated the D.E.B.T formula which stands for: 

• D- Define The Problem
• E- Establish The Plan
• B- Build A Budget
• T- Trust The Process

He had definitely lived through each step of the formula as he was well aware of his debt, made plans to overcome it, wrote out  a budget and was determined to maintain his course towards debt freedom. 

Achieving Debt Freedom
In order to do so, Marcus negotiated a salary increment at his job and this enabled him to settle off his debt within 36 months. 

He used one of the many ways to come out of debt, increase his income. There are a number of ways to do get rid of debt gradually like; 

• Stop going out to eat

Eating from home is way cheaper than eating at a restaurant, learn to meal prep so you can readily have food. 

• Avoid expensive hobbies.

Settle for fun yet budget friendly hobbies like going to the park with friends, ditch the golf for the club owners

• Cut the cable.

It may be amazing to watch the latest movies right on time however that $100 bill on cable can be sidelined for sometime as you make great use of the internet to search for free entertainment sites. 

• Ditch the gym membership

Working out does not necessarily mean you head out to the gym oftenly, YouTube has a number of workouts from home videos that can help you on your fitness journey. 

• Start a side gig

This cannot be exclaimed enough but who does not love extra sources of income, look into a number like babysitting, becoming a virtual assistant or joining affiliate marketing. If affiliate marketing is something you are looking to consider, I recommend taking this course “Master Becoming  an Affiliate” check it out here. You will up your game in affiliate marketing and make extra dollars. 

• Find accountability

This can be as simple as a friend on the same journey with you. Both of you can hop on a financial challenge and work towards it, this way you are always looking out for each other. 

The road to debt freedom is not a straight path, it is a couple of hills and valleys. However, if done properly, you can execute it with a smooth landing. Marcus was able to do so and you too can. 

Listen to how Marcus Garrett did it in the latest episode of the Money Exchange Podcast. 

If you are in need financial resources to help you on your financial journey, check out It$ My Money here.


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