It was easy getting into debt; it won't be so easy getting out.
Don't procrastinate. Putting off debt elimination will only make life stressful (and ruin your credit rating!) The longer you leave it, the harder it will be to get out of the hole. The sooner you make a start on reducing your debt, the sooner you can get back to looking forward to each new day, instead of dreading it.
Think of the debt monster. Do nothing, it grows bigger and meaner with every passing day. Face it down and it will begin to shrink until it's so small you can flick it out the window, never to be seen again.
Take action!
Thursday, 28 January 2010
Tuesday, 26 January 2010
Reducing and Restructuring your debts
If you are struggling to make payments, contact your creditors (who really do want to help you) immediately and explain the situation. Interest can be frozen and payment amounts can be reduced. Loan repayment schedules can be extended. Just ask.
Consider putting some or all of your debt on your mortgage.
Replace unsecured loans with secured loans, to reduce the interest rate.
Debt consolidation is another option. Instead of having many debts (loans, credit cards, store cards, higher purchase) you can consolidate all of them into one, leaving you with one payment, which can be less than the combined total of the individual payments.
Consider putting some or all of your debt on your mortgage.
Replace unsecured loans with secured loans, to reduce the interest rate.
Debt consolidation is another option. Instead of having many debts (loans, credit cards, store cards, higher purchase) you can consolidate all of them into one, leaving you with one payment, which can be less than the combined total of the individual payments.
Sunday, 24 January 2010
Reduce debt by increasing your income
Overtime = extra money = reduction in debt
Work longer hours? You can't be serious?
I am serious. Every hour of overtime is worth at least one poke in the eye of the debt monster; and when you've paid off your debts and find yourself reaching for the credit card (perish the thought), you'll be able to bring up some nice memories of working overtime to coax you into saving up for that "must have" item instead of taking the easy route.
No overtime available at your place of work? A second job is an option. If it' something completely different to your actual job, it could be extremely enjoyable. Doing something enjoyable to reduce debt... sounds good to me.
Surely I can make some extra money using the internet!
Of course, but don't dive in without researching first. There are genuine opportunities and many scams. Remember, if it seems too good to be true, then it most definitely is.
Work longer hours? You can't be serious?
I am serious. Every hour of overtime is worth at least one poke in the eye of the debt monster; and when you've paid off your debts and find yourself reaching for the credit card (perish the thought), you'll be able to bring up some nice memories of working overtime to coax you into saving up for that "must have" item instead of taking the easy route.
No overtime available at your place of work? A second job is an option. If it' something completely different to your actual job, it could be extremely enjoyable. Doing something enjoyable to reduce debt... sounds good to me.
Surely I can make some extra money using the internet!
Of course, but don't dive in without researching first. There are genuine opportunities and many scams. Remember, if it seems too good to be true, then it most definitely is.
Friday, 22 January 2010
Reduce debt by reducing how much you spend
Sit down with a pen and some paper.
Write down a list of all your expenditure; mortgage/rent, fuel, mobile phone, clothes, food, etc.
Categorise them into:
Fixed (eg mortgage)
Essential but not fixed (eg fuel, food)
Non-Essentials (eg mobile phone, treats)
If you really put your mind to it you can make significant reductions in the essential but not fixed category. Heating, for example: During winter, do you have the heating turned way up? A lot of people go overboard with the thermostat, and turn their home into a furnace.
Reduce your heating bill by turning the thermostat down and adding a layer of clothing. Think of it as adding a layer of protection from the debt monster lurking in the corner.
Non-Essentials (also known as the Debt Creation category)
This is the category that has most likely contributed to your debt problem; so it makes sense that reducing the items in this category will reduce your debt. Before you begin reducing the items in this category, be certain that you haven't "mistakenly" ;) listed items in the second category that really should be in this one.
If you really cannot survive without your mobile phone, and you have a contract, then consider switching to pay-as-you-go.
Create a Budget and stick to it. Easier said than done, I know. Just try it.
Write down a list of all your expenditure; mortgage/rent, fuel, mobile phone, clothes, food, etc.
Categorise them into:
Fixed (eg mortgage)
Essential but not fixed (eg fuel, food)
Non-Essentials (eg mobile phone, treats)
If you really put your mind to it you can make significant reductions in the essential but not fixed category. Heating, for example: During winter, do you have the heating turned way up? A lot of people go overboard with the thermostat, and turn their home into a furnace.
Reduce your heating bill by turning the thermostat down and adding a layer of clothing. Think of it as adding a layer of protection from the debt monster lurking in the corner.
Non-Essentials (also known as the Debt Creation category)
This is the category that has most likely contributed to your debt problem; so it makes sense that reducing the items in this category will reduce your debt. Before you begin reducing the items in this category, be certain that you haven't "mistakenly" ;) listed items in the second category that really should be in this one.
If you really cannot survive without your mobile phone, and you have a contract, then consider switching to pay-as-you-go.
Create a Budget and stick to it. Easier said than done, I know. Just try it.
Wednesday, 20 January 2010
Debt can be a good thing
It can improve your standard of living, enable you to buy a house, or invest in your education. However, should your level of borrowing become excessive, it can lead to problems.
If you find that you are unable to make the required repayments on your debts, then you must take action immeditely. Hoping that it will sort itself out is not an option!
Many people automatically bury their heads in the sand when faced with financial difficulties - DON'T BE ONE OF THEM. Face up to the problem. Tackle it head on. It may seem difficult at first, but trust me when I say that addressing the problem as soon as it appears will be so much easier to fix than if it's left to grow and mutate into a monster.
Yes, you've bought some nice things, thinking, "I want that. I'll put it on the credit card and pay it off next month." Can you really enjoy those things when there's a growing monster, with debt written on its forehead, towering over you?
You must tackle that debt monster!
If you find that you are unable to make the required repayments on your debts, then you must take action immeditely. Hoping that it will sort itself out is not an option!
Many people automatically bury their heads in the sand when faced with financial difficulties - DON'T BE ONE OF THEM. Face up to the problem. Tackle it head on. It may seem difficult at first, but trust me when I say that addressing the problem as soon as it appears will be so much easier to fix than if it's left to grow and mutate into a monster.
Yes, you've bought some nice things, thinking, "I want that. I'll put it on the credit card and pay it off next month." Can you really enjoy those things when there's a growing monster, with debt written on its forehead, towering over you?
You must tackle that debt monster!
Subscribe to:
Comments (Atom)