A helpless soul is overwhelmed by a heap of debt. A year and a half ago, I determined my debt and did something about it. Although there is still a long way to go, I have a detailed plan and specific goals that will lead me to one day being debt free. Over time I was able to carry around $13,000, while another $3,500 was put aside for an emergency fund to cover things that happened.
First Step
Before we dive into the bulk of the data, you need to complete the first step: your total debt. It’s time to face your fears and realize how deep you are. Before you can pay, you need to know how much you have to pay. It is also useful to keep yourself with him. If you don’t know how much you started with, it’s impossible to tell how much you’ve paid and what’s left to pay.
Here are three ways you can start working to pay off your debt now:
Create a new Revenue stream
A good way to tackle debt is to bring in new products. This is easier said than done, but it’s not as hard as you might think. There are many ways to write money in lots of extra pay on your most pressing bills. Make sure you earn it directly for existing bills, not to help fund new projects.
4 Ideas for New Revenue Streams
–Happy Journalist: As you read this article, making money to pay off debt, thank you! Anyone can create an account on Yahoo! Write voices and articles of silver. Write about what you know and what you love.
–Parttime job: A part time job > Added to the current work load, if you work full time, it is a big task and not recommended for a long period of time. Look for a job that you can work a night or two a week, and one where you have the potential to earn tips.
–Buy/Sell: Selling unwanted items online is only an income short term option , so you know enough to buy and sell more for? Check garage sales and thrift stores to find out what’s worth more than what’s being sold. My brother has made thousands over the past few years selling ugly Christmas sweaters that he found at thrift stores to party goers who watch out for the ugly Christmas sweater over the holiday season.
–Odd jobs: Do you know someone who needs a job done? If you are savvy in sell things online as I said above, see if you know someone who is willing to send. You sell them stuff for a fee.
Until
Budgeting is probably the last thing I want to do on a Friday night, but now I know it’s important. Having a budget gives you an outline of what your expenses are and how much of your income is available to pay off debt. If you don’t have a budget, there is a lot to think about much more than the simple things like food, entertainment, not necessity. By simply budgeting, I was able to cut my family’s monthly food costs from over $500 to under $350.
If you need help learning how to start a monthly budget, see Dummies.com’s How to Create a Monthly Budget page here.
There are many free tools you can use to help you budget for your monthly expenses, see below for a free budgeting tool.
BudgetWorksheets.Org Free Budget Worksheets
Current Excuses Excuses
There are countless ways to reduce your current expenses even beyond budgeting and limiting what you spend on a monthly basis. Here are five ways to cut current expenses.
–Cancel/Renegotiate cable TV and internet: Although we had our cable television package taken away. over a year we were still paying over $60 a month for what was supposed to be high speed cable. When we realized we weren’t running anywhere at the speed that was promised, my wife called the cable company and was able to reduce the cost to $20 a month for 6 months, and then $40 after that. This one phone saved us $360 last year. Whatever your cable or internet situation is, see what else is available in your area and try to get a lower rate, or consider canceling the internet.
–Business credit card interest rates: Business A lower rate credit card is much tougher than it used to be as lenders are tightening restrictions. There are still lenders who offer lower rates to keep customers. Although you will eventually try to cancel all your bills and live completely debt-free, try to lower your rate. If you are in a financial emergency, there are programs available that your credit card companies offer lower payments and lower interest rates. for a certain period of time. If your creditors don’t want to lower your rates, consider closing the card and paying it off as soon as possible.
–Insurancerates: Insurance is one story where you save a lot of money by shopping around From life insurance to car insurance, shop around for better rates and even see companies that offer extra discounts for bundle packages. in one.
–Coupons: Training, but start looking for coupons both online and in local. leaves. You need training because it’s easy to find good jobs that you don’t need. I’m sticking to the basics, but make sure you start by browsing and using the links.
–Eliminating Signatures: I have a habit of signing for autographs and never canceling them. Look at the monthly and annual subscriptions and decide what is really necessary and what can be cut. I was able to delete three subscriptions for commentaries, an online subscription service for radio, and a cheaper subscription for movies.
Other Recommendations
–Getting a family together: Budgeting and paying off debt is not an easy process. It is vital to your success that you get your spouse and the entire family on board.
– Attend the class: I participated and helped lead the financial classes that were paying the copper. I highly recommend Dave Ramsey. Financial Peace University is the best class and Dave Ramsey’s Total Money Makeover books changed how I think about debt and helped me realize that I needed to address debt now.
Congratulations on taking steps to pay off your debt. Stick with it, and good luck!
