DEBT is just about everywhere - It is a very scary thing that can transform people's lives and turn them into a living hell.
Today about 43% of ALL Americans spend MORE than they make.
This is not a good thing and can have many possibly negative consequences.
With the holidays coming up and many people still struggling with the lows of the recession, I have decided to lend a helping hand out to everyone and provide some tips on how to possibly eliminate or reduce debt...
5.
WHERE IS YOUR DEBT COMING FROM? This is a VERY important question that you must answer.
Sit down by yourself (or with a loved one) and figure out where your debt is coming from.
Do you have student loans? A mortgage? New Car? new TV?? Go through all your expenses and figure out how much money you are spending on each of these items.
After this list is done, you need to look at how much money you can allocate to pay off each item by creating a detailed budget and FOLLOW IT! Make is a top priority! 4.
USE ONLY 1 CREDIT CARD Many people have numerous credit cards, and most people tend to use all their cards.
This is a very serious problem that can also lead to unwanted debt.
What is the solution? CUT UP the cards and only use ONE - If you dont have the card anymore then there is no way you can charge something to it.
3.
CREATE A BUDGET FOR NEEDS VS WANTS How much money do you spend on eating out? entertainment? electronics? cell phone? All these items add up - quickly.
Sit back and ask yourself "DO I need to have the latest and greatest electronics?" "Do I need to see a movie every week?" The answer to these questions is: NO.
There is a big difference between "needs" and "wants".
Most people let their "wants" take over their "needs" and soon become engulfed in debt.
Instead of seeing a movie every week, why not save that $20+ each week and either put it into savings, save up for something that you want, or pay off a credit card that you owe.
2.
SEEK CREDIT COUNSELING If you are extremely in over your head, this might be a suitable option for you.
Do your homework, find out what you owe, how much you can pay, and talk to a specialist.
They will be more than willing to listen and provide methods to help eliminate your debt.
1.
USE CASH WHENEVER POSSIBLE To me, this is the most important tip.
Use cash - that way you will not have to worry about getting a monthly statement in the mail which can be very surprising.
If you don't have the cash to pay for the item, then it is probably not a crucial item to purchase.
It is more than likely a "want" and not a "need" which can wait!
Today about 43% of ALL Americans spend MORE than they make.
This is not a good thing and can have many possibly negative consequences.
With the holidays coming up and many people still struggling with the lows of the recession, I have decided to lend a helping hand out to everyone and provide some tips on how to possibly eliminate or reduce debt...
5.
WHERE IS YOUR DEBT COMING FROM? This is a VERY important question that you must answer.
Sit down by yourself (or with a loved one) and figure out where your debt is coming from.
Do you have student loans? A mortgage? New Car? new TV?? Go through all your expenses and figure out how much money you are spending on each of these items.
After this list is done, you need to look at how much money you can allocate to pay off each item by creating a detailed budget and FOLLOW IT! Make is a top priority! 4.
USE ONLY 1 CREDIT CARD Many people have numerous credit cards, and most people tend to use all their cards.
This is a very serious problem that can also lead to unwanted debt.
What is the solution? CUT UP the cards and only use ONE - If you dont have the card anymore then there is no way you can charge something to it.
3.
CREATE A BUDGET FOR NEEDS VS WANTS How much money do you spend on eating out? entertainment? electronics? cell phone? All these items add up - quickly.
Sit back and ask yourself "DO I need to have the latest and greatest electronics?" "Do I need to see a movie every week?" The answer to these questions is: NO.
There is a big difference between "needs" and "wants".
Most people let their "wants" take over their "needs" and soon become engulfed in debt.
Instead of seeing a movie every week, why not save that $20+ each week and either put it into savings, save up for something that you want, or pay off a credit card that you owe.
2.
SEEK CREDIT COUNSELING If you are extremely in over your head, this might be a suitable option for you.
Do your homework, find out what you owe, how much you can pay, and talk to a specialist.
They will be more than willing to listen and provide methods to help eliminate your debt.
1.
USE CASH WHENEVER POSSIBLE To me, this is the most important tip.
Use cash - that way you will not have to worry about getting a monthly statement in the mail which can be very surprising.
If you don't have the cash to pay for the item, then it is probably not a crucial item to purchase.
It is more than likely a "want" and not a "need" which can wait!