Buried in Debt: How to Dig Your Way out of Despondency
Friday, February 2, 2018, 6:00 AM | Leave Comment
Debt can be incredibly easy to fall into with 80 percent of Americans in debt today.
While some of this debt is due to something perceived as good, such as a home mortgage, millions of Americans are stuck with student loans, car loans, personal loans and consumer debts that keep them from living the full and satisfying lives of their dreams.
If you have any type of debt, you can follow these four tips for knocking that debt out as quickly as possible and for getting back on the path toward success.
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Make a Budget and Stick with It
Without a monthly budget, you will have no way of knowing exactly where your money is going each month. Track your income and expenses for a month to get a handle on where your money is going.
Then, create a zero dollar budget for the next month that will track every dollar that you earn and will tell every last bit of money where to go. Keep in mind that your budget will only work if you follow it closely.
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Trim Expenses
If you want to have more money to throw at your debt, you must find a way either to make more money or to spend less money every month. For most people, it is easier to trim expenses.
Some of the most common categories that you may be overspending in include eating out as well as buying gifts and clothing. However, cable bills, Internet charges and cellphone plans can eat up your money quickly as well.
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Use the Debt Snowball
By using a debt snowball, you will be able to increase the amount of money you are putting towards paying of your debt gradually each month.
With this repayment method, you will put as much money as you can towards your smallest debt until it is paid off while making minimum payments on the rest of your debts.
As each debt gets paid off, add the amount that you were paying on them to your total debt payoff amount each month.
The more you pay off, the more money you will have for attacking your debt.
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Speak with a Bankruptcy Lawyer
If you have a large amount of debt that is far above the amount of your assets, you may need to consider declaring bankruptcy.
Be sure to do this only with the help of a qualified bankruptcy lawyer. He or she will be able to tell you what debts you will be left with even after declaring bankruptcy and how this will affect your credit.
You do not need to be one of the millions of Americans who die in debt. By getting your debt under control quickly, you will be amazed at how soon you can be living a fuller life with less financial worry and fewer strictures.
Whether you would like more money for traveling, saving or even giving away, these four tips can help you dig your way out of the despondency of debt.
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Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor’s Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn’t on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on twitter and Facebook.
