It was just the other day that I was reading about a friend of mine’s debt. He was talking about the upcoming expenses that he is likely to incur and how he is going to prepare for them, one of which was his monthly car payment. He is currently paying two car payments each month, along with a mortgage, and who knows what else. He made the comment of not knowing how to escape his debt and I can’t help but think about how cyclical debt is.

Can he not see a way out because he is that overwhelmed? Is he without any hope of paying it off that he sees no way out?

Despite what you may think, there is a way to pay off your debt and be debt free. There is always hope – it just takes a little bit of perseverance to get over the initial hump that may be holding you back.

Why Debt is Cyclical and Why You Should Avoid it

In case it isn’t obvious, debt is cyclical for a couple basic reasons. The first is that it bind you into a payment plan, meaning that x amount of money is tied up each and every month. This is destructive for two reasons. First, on the surface level, it means that you have to pay that much money each month, but more importantly, it means that the money for the monthly payment cannot be put towards saving up for the future. An emergency fund or fund to prepare for future expenses seems out of the question because all of your hard-earned cash is already committed to paying off the things you bought in the past.

Whether you like it or not, by taking out debt, you are putting yourself at a disadvantage. Instead of thinking ahead, you are always looking to the past. Instead of being pro-active, you are forced to be re-active. My friend has difficulty saving up for a car because he is already paying so much for his monthly commitments.

What do Do When You’re In Debt

Because my friend is over his head in debt, I can’t help but think of a way to help him. So, I asked myself, “What would I do if I were in his position?”

If you are in debt and have a hard time saving for future expenses, you might want to consider the following things:

  1. Make a sacrifice somewhere in your life and lower your monthly expenses. Whether this means selling one car and being a one-car-family, or moving to a cheaper apartment/house. Getting out of debt is never easy and don’t trick yourself into believing that there is a painless way out.
  2. Get a second job. You don’t have to work another full-time job, but why not try to work an extra night or two a week. The extra cash can go towards paying down your debt or saving for future expenses that you know are coming.

These two things are what anyone should do if they want to pay off debt quickly. It doesn’t have to be a lot of savings either way, but you have to do something to make a change. Don’t rely on those future raises because we know annual raises don’t always happen.