Tuesday, September 25, 2012, AM | Leave Comment
Many more folks have problem of how to get out of debt while they still have a chance and while they are still living. Everyone might have a different approach how to go about it.
Each individual’s credit and debt circumstances are different. However, there are some “generic” ways to solve the debt problem. The most famous line you read is “Spend less than you make.” Nothing can be more true if you want to deal with debt.
Here are a few steps you can take to reduce the burden of debt on your shoulder and eventually eliminate it altogether from your personal finances.
First off, you gotta face your debt head-on
Get the nerve and all your guts to pull every bill. Call everyone who sent you the bill and find out the total balance and at what interest rate.
Face your bills
Put down on paper every scrap of money you pay each month including rent, insurance, any kind of audio/video service you are subscribing to, all recurring bills including credit card payback minimums.
See what you could trim from the bills, no matter how small
Trim the fat on your bills. Cut down on premium channels [they are mostly repeats anyway]. Your cell phone can attract more money away from your pocket than you can imagine.
Make a budget
Tabulate how much money you make and how much eventually you spend in a given month. If you spend more than you make, see how best you can reverse the negative trend that you might have created.
Open a bill paying checking account
This could be the most important step you would make. Survey after survey shows that more folks heavily in debt have been helped by opening a bill paying checking account. Deposit how much you expect to pay in bills for the month and never more. Never spend money in your checking account on anything else. Save the rest, no matter how small amount, in a savings account.
If you make “extra” money in a given month…
First of all, pay your credit card debt with that extra money. Make it a habit to pay more than the minimum by as much as you can – at the least $20. Just paying the minimum every month is bad for your credit anyway.
In a Nutshell
Do what you have to do to get out of debt. If you are determined and give it your 100%, you can do it.
Facing the fear of how much you really spend may be the worst of anything. But once you faced it, you would find out soon enough that it was a great accomplishment on your part.
Remember, don’t leave your debt to your kids. You would be dead but your debt would still be alive.
Your family might be liable to pay off and they would have to clean the debt shit of your creation, not theirs. Think about that for a while.Facebook.com/doable.finance