- Paying off consumer debt begins with asking yourself a question, according to Adeola Omole, author of “7 Steps to Get Out of Debt and Build Wealth”: What’s motivating me?
- Omole paid off $US70,000 in debt in less than three years and she explained how she did it on Farnoosh Torabi’s “So Money” podcast.
- First, you have to figure out why you decided to go into debt in the first place. This helps you pinpoint your money mindset and behaviours, as well as money limitations.
The answer to getting rid of consumer debt begins with a question.
At least, that’s if you follow the seven steps in author and lawyer Adeola Omole‘s book, “7 Steps to Get Out of Debt and Build Wealth.”
According to Omole, who paid off $US70,000 worth of consumer debt in under three years, you need to figure out two things: Why you got into debt in the first place, and why you want out.
“What’s motivating you? What’s driving you? What’s getting you excited to get out of this debt?” she said on a recent episode of the “So Money” podcast with Farnoosh Toorabi.
“Step one of the seven step process that I put people through is why are you doing this?” said Omole, who works as a wealth coach. “It’s a really simple question … basically, why have I decided to get a debt?”
She added: “Your ‘why’ basically has a lot to do with your mindset, your money mindset, your beliefs around money, your limitations surrounding money.”
Focusing on and tackling money limitations is what Omole said helped her crush her own debt and build a seven-figure net worth. Once Omole found her motivation, she gave up a few luxuries, like going to the movies and booking vacations. After she and her husband paid off their debt, they treated themselves to a vacation in Hawaii.
“We find things to do. We’re athletes. We would go running, we had weights so we would lift weights. We would find creative things to do; going for brisk walks,” she said. “It’s not as exciting as going to Hawaii, but guess what? It’s what you have to do to get to that stage that you want to get to.”
Omole changed her spending patterns to help her reach her goal. That’s the first thing you should do to pay off consumer debt, Alison Norris, strategy manager and certified financial planner at SoFi previously told Business Insider.
“The most powerful thing you can do is understand and address what caused the debt to accumulate in the first place,” Norris said, emphasising that the importance of changing those behaviours.
And once you do pay off that debt, it’s important to know your spending habits and promise yourself to never carry a credit card balance again.
“If you can’t afford to buy something without resorting to a credit card – if you don’t have enough cash on hand – you simply cannot afford it. Break the cycle,” Norris said.
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