There’s one common theme that seems to be running through the veins of households and that is that as many as 60% are drowning in debt. So what can you do if you are in debt?
The reason so many people are in financial trouble is really quite simple. Our modern day world encourages us to spend and with credit so easily available we have become spending addicts. Now we can buy now pay later and never miss a step.
Before you decide to make the major decision of going into bankruptcy which will ruin you financially and cause you to loose everything there are some things you can do.
Give debt consolidation a try. There are all kinds of free services that are ready to help. How debt consolidation works is all of your debts are consolidated together and paid off leaving you with a loan that has a reasonable interest rate and is anywhere from 10 to 20 years long. It’s a good way to get out of your current situation and have a manageable payment.
One way to save a lot is by eliminating those extras. Make a list of how many times you go to the coffee shop in a week, how many movies you rent, or any other money spending habits you have. Total it up and you’ll be amazed at how much you might save. Don’t cut yourself off totally but do reduce this expense by as much as 85%. You can save a real bundle this way.
Start collecting that loose change. Pocket change can add up quickly. Take it and toss it into a container marked for savings. Every three months add it up. You’ll be pleasantly surprised.
You also need to stop using your card because when you do this you will reduce your spending. You also need to list what you are planning to buy including your groceries and then go over the list cutting what you don’t really need. Anything you can live without should be cut off the list. When you are shopping buy nothing except what you have put on your list.
Get rid of all those extra credit cards. How often do we find that we have a wallet full of credit cards? Get rid of all but two cards and of those two one should be in your wallet and the other [with no balance] should be placed in a zip lock bag, set in a container of water, and placed in the freezer. This will eliminate any urge to use it but you will still have it for emergencies
In our modern plastic world it is very easy to get into debt and even easier to get in over our head with our buy now pay later mentality. There are lots of things you can do if you are in debt that will help you slowly work your way out.
