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I Need Help Getting Out Of Debt – Here’s How To Do It
It’s a sad reality that many people go into debt, and it can be difficult to imagine how one might start to get out of debt. But there are ways — it just takes some research and effort. But don’t worry! We’re here to help with the first step in your journey: understanding why you’ve been stuck in this financial hole for so long.
There are many reasons people get into debt, but the most common include: a) spending money to impress friends/dates; b) spending money to impress yourself; c) spending money out of habit because you always have in the past; d) spending money on things that are not necessary or just nice to have.
In short, these habits can all be changed by simply taking steps to remind yourself not to spend unconsciously. Start recording your transactions now — begin using a small notebook (or even a smartphone app) dedicated solely to recording purchases. Even better, try the envelope system: Put pre-tax dollars directly into specific envelopes for certain expenses and then take cash out of them as you need it. This will help you avoid spending unused money on impulse buys.
I Need Help Getting Out Of Debt – Credit Card Debt
Credit card debt is something that many people get themselves into trouble with. If you fall into this category don’t feel bad. You are just one of the millions that this happens to.
If your debt is over $10.000 it would be worth your while to get a debt relief quote from a company that provides this type of service.
We found that National Debt Relief is one of the highest-ranked companies that offer this service. They give you a free quote and can save you a ton of money by consolidating your debt and giving you a lower interest rate. This can save you hundreds per month.
You can take a look at their website here.
I Need Help Getting Out Of Debt – What To Do Once You’re Getting Out Of Debt
Once you have a handle on your spending habits, take stock of where you stand regarding your past debt. You may be surprised to find that, rather than making regular payments to reduce your credit card balances, you’ve been paying only the minimum due amount every month. Your goal now should be to make the biggest payment possible on your debt as quickly as possible — and stay on it! Missing or just barely meeting payments will only drag out your repayment period and increase what you pay in interest.
Getting out of debt is about making smart choices that ensure you pay less in interest and take more control over your financial health. In other words, it’s all about saving money! There are so many ways to save money that you can’t afford to take advantage of all of them. But here are a few that offer the greatest financial benefit and are useful in a wide range of settings:
Eliminating or reducing your debt — no matter the amount — will give you immediate access to more money, but only if you’re willing to make the sacrifice. For instance, you might be able to pay off a credit card balance and get a 0 percent introductory rate for six months or longer, which could translate into big savings over time. By the same token, if a car loan is making payments you can’t afford, consider refinancing to help take control.
You can save money on bills every month (sometimes a lot!) by negotiating with your service providers. It’s not as hard as you think: A simple phone call to your internet, cable and phone companies can help you make big changes. When you get your bill, spend an hour calling around and negotiating your way to lower rates and/or extra services for free. Anything that saves you $30 or more a month is worth the time, so be creative in looking for ways to reduce your spending.
Look for ways to make the most of your unused gift cards. If you have a bunch of unused gift cards in your possession sitting around, consider selling them and investing the money (or donate it) to your favorite charity. You could also check out local thrift stores or Craigslist, where cards are often selling for half price or less than minimum purchase requirements.
If you have an extra room in your home with no furniture in it, consider renting it out on Airbnb. You’ll be able to add another stream of income to your pocketbook, and if you do well enough, you may even be able to use the money to reduce what remains of the mortgage on the house!
Maximize all tax benefits on investments. If you haven’t been maximizing all available tax benefits on your investments, it’s time to take another look. There’s no such thing as too much money, and especially not when it has already been taxed at a low rate!
I Need Help Getting Out Of Debt – If you’re looking for more ways to cut costs, consider the following tips:
Sign up for automatic bill pay online; this will help you avoid late fees as well as give you an extra reminder to pay the bill on time.
Reduce your cell phone bills by negotiating with your provider for an unlimited calling package or by just using WiFi instead of data or a high-speed plan.
If you don’t have an emergency fund, create one. This will also help you avoid late fees and interest charges.
I Need Help Getting Out Of Debt – Final Thoughts
And finally, here are a few things you should absolutely do to get out of debt:
Make a budget that sets aside a set amount every month for paying down your debt or saving for the future. To make sure you’re staying true to your plans, put your budget in writing and make it public! The more people who see your plan, the better off you’ll be (and the better off everyone else is too!)
Make sure that if any new debts arise out of these guidelines (i.e. you need to open a new checking account), you transfer any old debts to a different account that’s free of fees.
Think of changes you need to make when re-entering your old financial plan (living within your means, for instance). A budget will help you stay on track, but be sure to consider what the new situation will require otherwise. For instance, if you’re buying a car or house now instead of saving, consider postponing the purchase until five years from now so that you can still handle your debt payments along with them.
Also, remember that certain people deserve priority in allocating money: children and spouses should come first, regardless of what their debts are.
Whatever you do to pay down your debt, be sure that you stay motivated. You may already have plans for paying off your debts, and they may work just fine; however, you should always be open to trying something new. Paying down debt is hard work, but it’s so worth it when you finally get there!
