Getting out of debt is vital if you want to save money, develop a healthy financial life, and store up good savings. For many people, however, getting rid of debt is very difficult, and it seems that after effort, debts remain. There are many reasons for this:

1) Not developing an emergency fund. If you are trying to pay down payday loans, credit cards, personal loans and other types of debt without an emergency fund, you are not setting yourself up for success. Without savings, any financial emergency you run into will result in more debt as you take out payday loans and cash loans to pay for the emergency. Set up an emergency fund first, so that you can stop taking on new debt and pay down the debt you do have.

2) Not taking care of revolving debt first. Revolving debt – such as credit cards and lines of credit – tends to keep growing and can last for years or a lifetime. You need to tackle this type of debt to stay debt-free. It is especially important to pay down credit card debt, because of the high interest rates.

3) Not changing underlying issues beneath the debt. Usually, there is something fuelling your debt. It could be a sudden health problem, a shopping addiction, or living above your means. It is important to target and change this issue in order to break free of debt forever.