Living on credit and drowning in debt seems to be the new normal in our crazy society. An over abundance of debt puts families into high levels of stress and doing unnecessary things with their hard earned money. Some people just live with the daily pressure of dealing with money issues, while others are making the effort and finding ways to reduce and eliminate debt, with the realization that being debt free is an excellent goal to achieve which turns into financial freedom.
The demands of money issues and money commitments spirals many individuals out of control, forcing people to never actually formulate a plan on how to recover and change for future options. People are coming to the realization that being in debt, stressing out over bill collectors is similar to a severe nasty illness that never goes away unless the right action is taken. Fighting money issues and the lack of money, will take the right medication , time and commitment to eliminate the “debt Illness”
Discovering and applying a variety of powerful tips on how to get out of debt will help you build your own personal ways to reduce and eliminate debt, and in the process build your financial future.
The desire to be debt free has to come totally from you. The commitment and dedication to completely change your money habits around has to start with you.
Are you ready for a major overhaul, do you want to be free from the “lack of money issues” that control your life?
Getting out of debt and making positive changes starts right now..
- You have to want to stop living in the cycle of debt
- Learn to put the brakes on your debt, stop going into debt
- List your debts, write everything down on paper so you can see the totals
- Right now, starting today, put the brakes on senseless spending
- Spend less than you earn
- Find ways to earn more and increase your income
- Get your total money affairs in order
- Learn to budget, no really, put yourself on a strict budget for a year and you will see amazing results
- Make plans for family and for yourself on how you are going to handle things, get your spouse involved, and your kids
- Find alternatives to the expensive activities and vacations
- Eliminate the highly expensive toys, and monthly fees
- Commitment and dedication is probably the hardest part. Figure out how you will handle it by yourself, with your family.
Getting out of debt and staying out of debt is definitely not easy and it certainly will not happen overnight or within the next month. So, get that out of your head.
13. You have to educate and learn everything you can about personal finances, credit cards, eliminating debt, issues with your credit score and of course staying out of debt. It starts bassically with your self, improving on your finances and making good choices
14. Discipline yourself and your family members on the proper procedures of handling money, saving money, earning more money and eventually investing your hard earned cash instead of throwing it away to the greedy loan sharks, overpriced services that you now deal with, such as higher percentage rates, excessive fees and overpriced products and services.
16. Get started, list all of your debts, (I said ALL of your debts, even the ones you hide from your spouse). Include the total amounts, the interest rates, the minimum amounts, how long it would take you if you stick to the minimum. (your credit card bill should have this listed, if not call and ask, this might really shock you)
17. Make your own plan, what works for one person will not always work for someone else
18. Track your spending, yes every penny you spend each and every day, keep it in your phone, record it when you get home, keep a little notepad on you. You will be surprised at how much you spend on “not really needed” items and impulse items.
19. Find all the free help you can, such as a debt repayment calculator, take a class, read a book!
20. Put yourself on a debt diet. To lose weight you would basically cut down on calories going in and include exercise to burn those unwanted pounds, of course the hardest part is staying on the diet. Do the same with your debt. Right now today, stop adding more debt to your bottom line, and pay down more debt each month than the minimum amount listed.
Dave Ramsey demonstrates great results with the snowball effect of paying the smallest balance first, when that is paid off then use that amount and add it to your next debt amount. Families are getting the ball rolling and are achieving workable techniques to pay down debt at faster speeds than they ever thought possible.
21. At the same time you still need to build some sort of an emergency fund just in case something does break down or an issue pops up. (and it always does).
22. If you can, refinance your mortgage for a lower rate, and find credit cards with lower interest rates.
23. Think twice about using debt consolidation companies. They charge their fees according to what your debt is, they get paid first and have the habit of paying small amounts (if any) to your creditors, and then your credit is ruined even more than when you started with them. Honestly you can do it yourself by contacting and working with the credit companies that you owe.
24. Learn to keep excellent records and details of all of your bills, who you talked with, and your estimated dollar amounts
25. Put together a long range vision of where you want to be.
Find ways to make extra money. Remember this is to pay down your debt to eliminate your bills, and to get you on the road to financial freedom. Earning extra income is not for you to go out and buy the newest and biggest ticket item.
Keep replaying it in your head that you are on a debt diet, to make quality positive changes in your life and to transform your finances once and for all.
Thousands of people that are already on their own diet debt are achieving great results when they plan, work and find a variety of ways to eliminate and reduce debt.
Some excellent places to start your own personal debt diet and improve your financial outlook starts right here: