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3 Tips For Getting Out of Debt
April 25, 2009 by DebtGenius3 Comments Tweet this post
Getting out of debt seems like a pipe dream to some. Whether you’re looking at a consolidation, looking at filing bankruptcy, or just looking at the overwhelming pile of bills with dismay, you have the power to change your financial future.
It’s NOT hopeless
For many, it seems hopeless. They’ve spent so many years borrowing from Peter to pay Paul and juggling bills like it’s a circus act that living without being under a cloud of debt doesn’t seem possible. It is possible if you make a plan and take it one step at a time. Here are 3 steps you can take, starting today:
Step 1 to Financial Freedom…
Make a budget. A budget is the key to your financial freedom. There are budgeting software packages available and you can even just make up a spreadsheet or use an old-fashioned envelope budget to allocate money to so that you can ensure all yoru bills get paid each month as well as having the ability to buy groceries. The key is to have a bit left over after everything is paid each month so that you can start paying more than the minimum payment.
Step 2 to Getting Debt Free…
Make more than the minimum payment. Just making the minimum payment on your credit cards is going to keep you in debt forever. Even if you’re only topping up by $20 a month for starters, you’re going to start to see your debt load drop rapidly. As bills get eliminated you can apply those old monthly payments to other leftover bills to get them out of the way rapidly as well. Before you know it, you’re going to have a lot of extra disposable income leftover!
Step 3 to Having More Of Your Own Money…
Pay Cash. Cash is king when you buy things. Not only are you able to have some negotiating power to get a discount on items but you’re going to own the item you’ve just bought outright. That means that no bills will arrive in the mail and no collection calls will come either. It’ll be yours —bought and paid for and you’ll only buy things you can afford.
