Getting Out Of Debt-6 Simple Steps
Have you found yourself in a position where you need to get out of debt? Well, you’re definitely not alone. Credit card debt is a way of life these days. What can you do if debt has taken over your life? Make getting out of debt your New Year’s resolution!
Write down your goal and make a plan for achieving it
The first step to getting out of debt is by far the most important – you need to:
• make a commitment to get out of debt
• write it down
• and come up with a plan
You didn’t get into debt overnight, and you won’t get out overnight, either. However, If you want to get out of debt you need to have a plan and you need to stick with it.
Seriously consider using a debt reduction program
If you have the discipline to get out of debt on your own, without any help, then good for you! If you’re like most people, a little help will go a long way. Here are a few debt reduction programs to consider:
• Credit counseling: If you have high interest rates on your credit cards, working with a non-profit company will help you lower those high rates, and combine your credit card bills into one lower monthly payment – which means more of your money will go towards reducing your debt!
• Debt consolidation loan: Homeowners can consider taking out a home equity loan to pay off all your credit card bills, lower you interest rates, and possibly deduct the interest on your taxes (but check with your tax professional on this one). Some banks will offer loans for debt consolidation as well.
• Debt settlement: If nothing else is working, and your debt is still overwhelming, then you should consider debt settlement. This is a more aggressive approach, and is not right for everyone, but if you’re considering bankruptcy, this is a good option. You can pay off all your credit card bills at a savings of 40-60%, and get out of debt much quicker.
Start fixing your credit problems
Many people think that anything that goes on your credit report stays there for 7 years but that’s not always true. Get copies of your credit report and make sure there are no errors that need to be removed. You can also contact your creditors who have left a legitimate negative report and ask they remove it. I got a bunch of negative credit items off my credit report – all I did was get a copy of my credit report, and ask the credit bureaus to remove the “bad stuff”. In just a few months, my credit was almost back to normal. There’s nothing that says we must pay for our mistakes forever (or even for 7 years)!
Cut down your monthly expenses
If you have been living beyond your means then it’s time to cut out all the expenses you don’t need. Use the money you save to pay off your credit card bills. Take a look at your checking and savings account statements, your credit card statements, and your monthly bills. Then start looking for things to cut. I know, I know, it’s hard to live without cable TV, cell phones, internet access, weekend dinners and entertainment. BUT DO IT ANYWAY – at least until you get your debt back under control!
5) Make some extra spending money
Sometimes making more money is the best answer! There are lots of ways to make money – selling some of your valuables, getting a part-time job, starting your own business, etc. Despite some of the ads you read, there’s no real secret to making money – you just need to find something you like to do, and work hard at it!
6) Think positive!
No matter how hard life can get, no matter how much debt you have, the one thing in life you can control the most is how you think. So rather than focusing on what you don’t have, be thankful for all that you do have. Nobody dies wishing they had made more money or worked longer. Many people do regret all the fun and meaningful things THEY DID NOT DO! So make some time to have fun, think positive, and find little ways to enjoy life EVERY SINGLE DAY you are here on plant Earth!