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Article Series: Debt
Relief & Debt Consolidation
I Want To Get Rid
Of My Debt...NOW!
How
to Handle Debt on Your Own
If you realize that your debt is spinning
out of control, you know you need to do something fast! Perhaps
you are not yet at the edge of financial disaster, but you
can see it from where you are standing. Sure, there is help
all around, but you feel that controlling your debt problem
is your job. Here are some suggestions on how to handle it
on your own.
Get a good idea of how much money is coming in and how much
is going out.
While this sounds a bit trite, it is also a true statement
that many consumers do not have the first clue where all their
money is going every month. If you are one of those folks who
toss out credit card statements and other bills once you have
paid them, now is a good time to start a file box and save
them. You need to find out how money you are spending every
month on interest charges, late fees, overdraft fees, and other
sundry expenses that do not really buy you anything. Similarly,
keep a list of your day-to-day expenses. How often do you hit
the local coffee shop for the mega triple latte with whipped
cream? Do you know how much it costs? Do you know how much
you spend at the coffee shop in a week - or maybe a month?
How about your lunch break – do you pack a lunch or do you
buy it? How much do you spend on lunch each day, each week,
or each month? What do you buy at the store other than necessities?
How many groceries find their way into the trash bin because
they are not used up before they expire or wilt? Getting a
grip on what you are spending your money on will go a long
way to helping you come up with a reasonable budget.
Make a budget and stick to it!
Once you know what you are spending your money on, see where
you can cut. Do you really need to spend $75 a week on coffee?
Would it be cheaper to invest in a good coffee maker and high
quality coffee you can make at home? Could you cut down on
your caffeine habit to maybe $50 a week? How about groceries?
Will you be able to cut back a bit and not buy chips and pizza
but instead buy apples, grapes, and spaghetti? This may save
you some money and also help you to eat healthier! Do not allow
yourself to be tempted to upend your budget, but instead stick
to it, at least for a month. If you were able to make it through
the month, you can reevaluate it and see if maybe you want
to up your coffee allowance and in exchange lower your restaurant
allowance.
Educate yourself on your debts.
These credit cards you are carrying, are they offering you
anything? Do you get rewards, points, or miles if you keep
them or are they just sucking up your money? If you do not
get anything out of the deal other than permission to spend
more money once you have paid down the balance some more, it
might be wise to transfer the debt onto a different credit
card that will offer you some rewards or at least a lower interest
rate.
Talk to your creditors.
Some creditors will be willing to lower your monthly interest
rate, and all you need to do is ask. Some car loan companies
are willing to let you skip a monthly payment here and there,
and then add it on to the end of the loan. The same is true
for some mortgage companies. Find out what your options are
and then use them to your advantage! Do not abuse them to go
on vacation and have some extra cash, but instead use them
so you can meet your financial obligations every month without
having to rely on revolving credit to pay other creditors.
These
are just the basic steps to get you started controlling your
debt problem and handling it on your own instead of turning
it over to a debt management company or taking out consolidation
loans that may cost you even more money in the long run! Remember,
the sooner you apply the brakes, the sooner you will have a
firm grasp on your finances and climb out of debt.
Click here to discover my current SolveYourProblem recommendation and choice pick for the fastest, easiest and best debt relief solution you'll find anywhere. Get it and reward yourself with more cash in your pocket.
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by SolveYourProblem.com
: 2007
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