Debt Management – Getting Yourself out of Debt
If you are like so many people currently experiencing moderate to heavy financial difficulties, there are options available to help you get out of your current situation. That is likely the reason you have found your way to this article.
You can solve your debt issues
There are many ways to permanently solve your debt issues. Unfortunately, none are easy, and all require personal and absolute commitment to resolution and even more importantly, personal accountability and acceptance that you are indeed responsible or, at the very least, partly responsible for your current situation. No matter how you find yourself here, there is hope and help available to get you out of financial trouble. Here are some easy changes you can make right now to get yourself out of debt.
Make your monthly budget
First, establish a realistic monthly budget. Take a hard look at where your money goes and evaluate the difference between a want and a need, cutting out discretionary spending such as dinning out, movies, cell phones, and yes, perhaps even cable television. Be creative in finding other ways to entertain yourself and your family.
Save it for the emergencies
Once you have a budget established and have trimmed out all the excess, learn to use cash when you make your purchases. This will develop a good, long-term habit and keep you from piling on more debt. Again, if you don’t have it, you shouldn’t be spending it. If you find that you must keep one credit card for emergencies, do not carry it in your wallet. Save it for emergencies only, and again, even emergencies can be handled for a lot less money when you get creative about your requirements.
If your refrigerator quits, there is nothing that says you must purchase a new one with a credit card. Check your daily newspaper for garage sales, or other listings specifically selling used appliances. The Salvation Army and other secondhand or consignment stores are great places to look for used, working appliances.
Consider your location needs
Also, evaluate your current living situation. Your housing should never be more than 33 percent of your household income. If you rent, consider a less expensive apartment. Consider your location, too. If you live in a highly desirable complex, you can bet you are paying a premium to live there. If you own your own home and you are paying more than 33 percent, then consider shopping around for lower insurance, refinancing your mortgage, and shopping around for more economical utility plans.
This is just the beginning, and there are many more ways to begin your journey down the path toward financial freedom and living debt free.