Anyone in Debt knows what it’s like to have Bill Collectors trying to get their hands on you at all times of the day, sending notice after notice, and the calling, house visits, and sometimes even borderline harassing. It’s a Massive Burden that will get you behind with your bills and drain your finances.
Getting Debt Free is a Huge Problem these days and every which way you look there are commercials on TV, the radio, and in the newspapers for Debt Consolidation Service Companies claiming Miracles about Reducing someone’s Debt from $100,000 to $3,000. And some do work out for people but it really is more smoke and mirror tactics than any sort of “actual” get you completely out of Debt Work that they do for you. More often than not they will just add to your debt in Fees for Service that will make up a circumstantial percentage of your overall debt even if they are helping to rid you of your pre-existing Debt.
These Companies definitely can Help when the Collectors come Collecting when they’re there to Deal with them and get them off your back, but Honestly, Most of the Work they do for you, can easily be done yourself. There are Situations when you would really need a third party to Negotiate with but that’s through like an Attorney where he could help in not having the pay such ridiculous fees to Debt Consolidation Services. The best options is finding a legit non-profit Debt Reduction Company and Learning How to do it yourself, because like I said, Most of the things these Debt Consolidation Companies do for you, you could easily do yourself. It will definitely be less expensive, and you might learn a thing or two about how to better handle your Finances later in life.
Here is a list of the best Tips to get yourself out of Debt that has Successfully worked for Hundreds of People. Pick and choose the best ones that would work for you…
- Write down your financial goal. A large goal is not likely to be achieved if you don’t write it down. Type it out, print it out in large font, and post it up on your refrigerator. What is your goal? A 50% reduction of your debt? Complete debt elimination in two years? Whatever it is, be specific and write it down, and don’t forget it.
- Create rewards. People who are good at achieving any goal will tell you that rewards are important. Try to give yourself a treat at regular intervals, or little celebrations when a debt is paid off. Let them motivate you to succeed.
- Think positive. This may be one of the most important tips on this list. Positive thinking may sound corny and trite, but trust me, it works. It’s actually crucial to debt elimination. If you start letting negative thoughts get into your head, it will cause you to want to give up. And debt elimination is such a long-term goal that it’s important that you not give up. When you feel yourself thinking negative thoughts, squash them and replace them with positive thoughts.
- Stop digging. As the saying goes, if you’re trying to get out of a hole, stop digging. It’s important that you stop using your credit cards for spending, and slow down your spending, so that you don’t get further into debt. Need to buy something but don’t have the money. You’ll need to find the money first, or wait until you have it, instead of using credit.
- Make a list of debts. This is a difficult step for many, but necessary. If you’re going to tackle your debt problem, you need to know what it looks like. Make a list of all your debts, their minimum monthly payments, interest rates, and total amount owed. A spreadsheet works well for this. Then total up the monthly payments and the total amounts owed to see what the damage is. Now that you have a clear picture of your debts, you can begin to make a plan to conquer them.
- Reduce expenses. See what you can do immediately to reduce your spending, whether it be cutting on things like buying coffee (make your own), eating out (cook at home), or shopping (just stop), or whether it be looking to cut out major bills like a second car payment or your yacht. If you can reduce expenses, even by a couple hundred a month, you can use that money to start paying down your debt. Whatever you free up from your expenses, dedicate that to making an extra debt payment (see the debt snowball below).
- Make extra cash. In addition to reducing expenses, you should see if you can bring in some additional income. Work part time, do some freelance work, sell some of your stuff on eBay, hold a garage sale, take in a boarder, rent out your yacht. Get creative. It doesn’t have to be permanent, although you might decide to keep bringing in the extra income even after you’re out of debt.
- Make a simple budget. This is another step that many people dread. Well, it doesn’t have to be complicated. Make a simple list of the things you spend on every month, including your minimum debt payments. Write down how much you spend on each one (and be realistic). Total it up. Then add up your income, and see if the income exceeds the expenses. If not, you’ll need to reduce the expenses.
- Watch for irregular expenses. Think ahead to expenses that may be coming up, like Christmas and birthdays, or insurance or home repairs or car maintenance or back-to-school shopping. These are things that don’t happen every month, but that will definitely be coming up. Budget for them, saving a little so that you are prepared. It’s best to include a small amount in your monthly budget for irregular expenses like this, so that you have the money when you need it.
- Save an emergency fund. This tip might seem strange in a list of debt elimination tips, but it’s actually very important. Without at least a small emergency fund, you’ll iva 申請 have an extremely difficult time reducing your debt. The reason is that when unexpected expenses come up (and they always do), if you have no emergency fund, the first thing you’ll cut is your debt elimination payment so that you can pay for the unexpected expense. Either that, or you’ll use your credit card and get further into debt. Try to save up $1,000 in a savings account to pay for these unexpected expenses and ensure that your debt elimination goes smoothly. Once you’ve saved up that $1,000, put it all towards debt.
- Stop using credit cards. Many of us have a problem with credit cards. If you’re the type to pay your balance in full each month, and not carry credit card debt, you can skip this tip. If you don’t pay your balance in full, cut up your cards or hide them and stop using them. The interest is extremely high, and it’s way too easy to use a credit card.
- Use cash. Instead of putting all your expenses on a card, try using the green stuff instead. Each payday, withdraw the amount of cash needed for your spending expenses in the simple budget you created (see above). Pay your bills online first, then withdraw the cash for groceries, gas, and other spending. When you run out of cash, you’re out. It’s that simple.
- Use a debt snowball. Popularized by financial adviser Dave Ramsey, the debt snowball is a simple method that works well for many people. First, identify at least $100 that you can use as your “debt snowball”. Use this amount to increase your payment on your smallest debt, while paying the minimum on your other debts. Soon, your smallest debt will be paid off. Now take the total amount you were paying on that debt (the “debt snowball” amount plus the minimum payment for that debt), and use it as your debt snowball amount for your next smallest debt. Continue to do that, with your debt snowball amount buil.