The importance of mindset

When looking at clearing out debt, there are multiple ways to go about it. But the most important is having the right mindset. Mindset changes help you in your debt repayment journey to be successful.

This is easier said than done. The first step in getting out of debt is to stop borrowing. Limit your spending to what you have available in cash. The more you’re comfortable with someone else’s money, the more you’ll be in debt.

Commitment is one of the biggest mindset changes you need. Once you've committed to only spending what you can pay in cash, it's time to make a plan. You’ll get a clear picture of your finances: your income, your expenses, what you're saving for, and what you’re not.

Sometimes, you may be able to negotiate a more affordable payment plan with your lenders. So the simple idea here is to pick up the phone and talk to your lender. Another method is to use Gauss. You can use the Gauss credit line to immediately repay your high interest debt and reduce your credit lines to a lower interest.

Once you've paid off your debts, be very selective about when you use credit to make purchases. Build a safety net for large purchases. Plan everything and don’t fall into impulsive purchases.

Whether you're getting out of debt one loan at a time or paying down your debt to raise your credit score, keep the momentum up. It is tough to begin with, but the rewards of being debt free is like a good night’s sleep. Peaceful.