Posts tagged debt help
Get Out Of Debt: Steps to Change
Jan 5th
Getting out of debt is not only making payments. In order to stay out of serious debt, you must change your mentality on spending and learn how to manage your debt behavior.
Take it slow.
Its impossible for you to make all the changes you want to at one time. If you try to take them all on at once, you are bound to fall back into old habits discouraged. Paying off debts is not an instant fix; its a lengthy process towards a new financially stable. Take a few weeks to monitor your spending to find where your habits lie. Take another few weeks to try and curb your spending and form a budget that will benefit your lifestyle. Once everything is in check, then you can take all of your new found knowledge to begin your debt busting regimen.
Don’t forget to be realistic in your thinking.
Short term goals are extremely beneficial. Once you accomplish these you will have new found confidence in yourself and you will push yourself even harder to accomplish your long term goal of paying off all of your debts. Stop accruing debt first and then begin paying it down. Depending on the extent of your debt situation, it could take a few years to be debt free. Reward yourself every time you achieve one of your goals so that you can encourage yourself to continue. How happy will you be when you can open your credit card statements without a shock, or you can answer the phone without wondering who is on the other end of the 800 #?
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Get Out of Debt: Wants Vs. Needs
Jan 5th
Discretionary Spending is key to eliminating debt.
*Wants* Anything that you would like to have to increase your quality of life, but you could survive without. Jewelery. Nights Out On The Town. Makeup. Video Games. ETC.
VS.
*Needs* Anything required in order for you to survive. Food. Water. Shelter. Clothing. ETC.
Always set realistic goals for yourself. By setting easier goals for you to accomplish at first, you will keep yourself from becoming discouraged. For example, if you have a habit for purchasing clothes a little too often, cut back to buying one article of clothing each week and work yourself up until you only buy one piece of clothing per month.
Based on past trends in spending, food seems to consume most families income. It’s the same old story: You spend quite amount of money stocking your refrigerator with healthy delicious foods. After a late night at work, you are too tired to cook anything and decide to just pick something up for dinner.
Did you know that the average family of four can spend up to $50 on just one meal at a fast food restaurant?
So although food is a NEED, eating out and spending a weeks worth of groceries on one meal is not necessary. So the next time you plan to stop and pick some chow for the family at McD’s, ask yourself if making an extra payment on your car note or a cheeseburger is more important to you!
Get Out Of Debt: Let’s Get Started
Jan 4th
I NEED HELP.
I’m in debt.
I want to get out of debt.
I’m going to make the changes necessary to get out of debt.
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Question: If you make approximately $40K a year, what is a reasonable amount of debt for you to have each month?
Answer: You should spend no more than 30% of your take home income each month on housing (rent or mortgage). Additional debts (i.e. credit cards, car payments, etc) should only account for, at maximum, 10% of of your take home income. Using the $40K example above, that means that you should spend no more than $990/mth (approx.) on housing and $330(approx.) on additional debts.
The 4 Things You Need To Do To Get Out Of Debt:
* Pay Attention -> Look at your income and monitor every expense. Before you swipe your debit card, contemplate if the purchase is a WANT or a NEED. If it is a NEED, is it possible to get the purchase somewhere else at a better price? Do you really need the high quality version at this time?
Simple Trick: Pay for as much as you can by personal check. Paying by check allows you to have exact records of everything you purchased so that you may look back and see exactly what you spent most of your money on.
Get Out Of Debt: The Beginning
Jan 4th
I don’t like the term ‘new year’s resolution’. If there is something you want to accomplish, it is something that you should be working on every day, not just at the beginning of a year. If you keep the resolution mentality then you will most likely fall off the band wagon after a few months if not sooner.
In an effort to help change my lifestyle and assist many others who have the same goals for this year, I’m going to begin a series on getting out of and/or drastically reducing debt. ?Based on the information that I will be researching through books, mentors and counselors, I am going to discuss the information here on my blog. I would love active participation from my readers!
Whether you are in debt or not, please stick around and get advice or even give advice to those who need it.
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“I consider myself out of debt when…?”
First off, Congratulations in accepting the fact that you have a debt problem and you wan’t to overcome it!
I will consider myself out of debt once the only payments I owe are for “good” debts. I consider mortgage payments, car payments and/or insurance as good debts. What does being debt free mean to you? Will it be when you only have “good” debts to pay? When you don’t know anything to anyone? Defining this question starts building a great foundation for your debt free journey.
Before you begin you also need to consider and identify the reasons you got into debt in the first place. Is it due to you living beyond your means? Is it due to a job layoff, a divorce or a time of emotional distress? By identifying the reasons you are in the place you are today, you can do your best to prevent the situation from reoccurring. I am in the situations I am today because I was living beyond my means, I was infatuated with material possessions and my addiction overtook my wallet.
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