Like most people in the world, I have struggled with personal debt for as long as I can remember.
For years I refused myself vacations on the self imposed rule that “until I’m debt free I can’t spend that kind of money.”
I finally began travelling about five years ago. My first vacation was in my late 30’s and now I’m hooked.
Giving me even more incentive to get myself the heck out of debt!!
These six tactics are my plan of attack to resolve my finances once and for all.
This may seem obvious, but lots of people who find themselves in debt don t actively seek out information on the issue. Or they look on the internet for a minute and decide that is sufficient. If you are having debt problems, go you?re the library or bookstore and find books on the subject. Look up budgets, debt, credit scores, and anything that relates to your situation. Arming yourself with a bunch of information is your best bet for getting out of debt and staying debt free.
Organize Your Bills
I need to know exactly how much debt I have gotten myself into before I can make a plan on how to fix it. I need to clearly lay out what my monthly minimum payments and who they are owed to. Figure out what your collective payments are each month along with how much debt you have total.
Make a Budget and Stick to It
The much dreaded “B” word. Budget. Once I have all of this figured out I can make a budget. In order to get out of debt I must make a plausible budget and it must cover all aspects of my life. This way I won’t overspend anywhere and cut myself short on paying bills. I will have to stick to this budget unless I want to get into further financial trouble.
Get Rid of High Interest
If I ever have extra money at the end of the month, I will use that money to pay extra on my debt. I’ll strive to pay off the credit with the highest interest rates first so that I am not wasting any more money on interest. This can save PILES of money in the long run.
Cut Back on Spending
This won’t be fun, but I would have to be a complete idiot to not realize that getting out of debt will require that I cut most of my spending. After all I got myself into this situation and I’m the only one who can get myself out of it.
Diversify Your Income
This is what I’m working on now, with my efforts to build an online business. Every extra bit of earnings that I can put on my debt will speed up my repayment. If working online doesn’t suit, a person could babysit on weekends or even take up a hobby and create something that can be sold. It may not seem like much, but even a couple hundred dollars extra a month will take debt out quickly.