Thursday, September 10, 2009

Managing Debt: Get A Grip on Reality

From the

Whether you spend more than you make or have borrowed too much along the way, it’s time to realize that you’re not the only person who has made this mistake or is faced with the payoff battle.

Whatever your case is, if you’re serious about getting out of debt, the bottom line in doing so is training yourself to live on what you earn versus living on what you want. To do that, you’re going to have to make a few modifications.

All the energy previously put into a lifestyle that’s virtually unaffordable, now needs to be put into paying down the debt. Below are several tips to get started.

The first thing you need to do is set up a budget. This way, you’ll know exactly where your money goes. Be sure to allow funding for an emergency fund.

If your situation permits, work overtime or get a part-time job. All additional money should be used to pay down debt.

Have a yard sale. This will cost you nothing and anything earned should be used to reduce current debt.

If you eat out three or four times a week, limit it to one or two.

Make changes to non-essential expenses in order to save money each month. Cable can be reduced to basic channels or cancelled. Contact your wireless telephone service provider and ask for a plan to reduce your monthly payment.

Stop using credit cards. Getting out of debt means no more debt. The sooner you stop using credit cards the better. Use a calendar to mark off each day without using a credit card as an incentive to continue this positive habit.

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