Posts tagged debt relief
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.