Get Rid Of Debt No Matter How Impossible It May Seem
No matter how impossible it may seem today, you can get rid of debt. You have a lot of options: you can do it yourself, you can hire a firm to help you, you can go to your local bank and get a debt consolidation loan. Whichever option you choose, make sure you do your homework first.
If you want to get rid of debt on your own the best way I know is to be very targeted in your approach. You should know that it may take time (the more debt you have, the longer it will take) and that it will definitely take discipline.
Here is a general outline of the steps you will need to take to make this method work for you:
1. First, make a detailed list of all of your monthly expenses, not just your credit card bills but all your monthly bills including gas, groceries and all other household bills.
2. Now that you know what you are spending every month, figure out what you bring in every month. How much is your income and all other monies you have coming into your household every month. Make sure you include income from all the people in the household who will contribute.
3. Now that you know how much debt you have and how many monthly expenses you have, subtract the amount of expenses from the amount of money you make. What does that leave you with? If it's a negative balance, it's a good thing you are doing this!
If it's a positive balance you should take that extra money and apply it to the normal payment you were making every month on your smallest debt. By applying that little extra every month you can have that debt paid off much more quickly than you would by just paying the minimum amount.
Once you have that smallest debt paid off, take the normal monthly payment you were making plus the extra money you were paying and add that to the normal monthly payment you were making on your next smallest debt.
Keep doing this until all your debt is paid off. But, like I said above, it will take discipline. You will never get anywhere if you keep using your credit cards. You have to put them away and not use them in order for this technique to work.
You may be wondering what you can do if you find that you don't have any extra money at the end of the month. Well, if you are in this situation there is still hope.
Most of us spend money on things we really don't need. You don't really "need" that expensive coffee every time you go to work, or you don't really "need" to eat out everyday, you can pack a lunch.
In short if you want to get rid of debt you may have to be willing to make some small sacrifices in the short term to ensure long term financial stability. It will be worth it if you do.
