Debt Relief

Easy Steps You Need to Take to Get Out Of Debt

If you are in debt then you will understand that the pressure you are under is enough to really make you dread even talking about money. Of course, if you have never been in debt before and this is your first time then there are a couple of things that you can do about this. The first thing that you will want to do is look at your expenses so that you can try and find out if you can cut back. This could include any magazine subscriptions that you have and it could also include any payments that you make to charities, phone contracts and more. When you have a clear idea of your finances and how you can save money, it is then very easy for you to get out of debt.

Stop Borrowing Money

This may sound obvious but if you want to get out of debt then it is very important that you stop using your debt to fund your own lifestyle. You need to stop signing up for any credit cards and you also need to stop even looking at things you don’t have the money to pay for. This will work in your favour if you opt for a bill consolidation or if you decide to go down a similar route.

Debt Calculator

Emergency Fund

You may be thinking that an emergency fund isn’t important when you are so much in debt. After all, you may feel as though you are paying absolutely everything out of your bank and that not much is going back in. The truth is that when you get a bonus from work or even when you get some money from a friend, this should go into your fund. If you use your credit card to fund all of your emergencies then this will cause real problems for you and you may even feel as though there is nothing that you can do to get out of debt. By saving whatever you can, you can then be prepared for life’s emergencies at all times.

Emergency Funds

Create a Budget

When you develop your own budget, you can then track your expenses and this is very crucial if you need to get out of debt. When you have a budget, you can easily find out how much money is going out and you really would be surprised at how much money you can save by doing this. If you are struggling to make a budget and stick to it then you may want to start using an app or anything else of the sort as this can really help you to track your expenses while you are on the go and it is a great way for you to make sure that every little thing is accounted for, so make sure that you keep that in mind. Of course, if you have any concerns about your budget then work with your partner to find out if you can plan out your wages according to your house needs.

Many Reasons Behind The Rising Debt Burden

Credit counseling, debt settlement and debt consolidation are a few ways in which you can get out of your debts. Find out more.

DEBT Infographic


Credit Card Debts: The Present Scenario in the US

Falling prey to unmanageable debts is not a rare occurrence in the US. At present, as per latest reports, the credit card debt figures are all set to assume mammoth proportions by the end of this year. While many of us might just “claim” to be successful with our debts, the reality is quite different— with CardHub, a personal finance website intimating that the credit card balances of the average household are well on their way to jump by more than $7k (than what they are now) as the year draws to its close. These circumstances, once again, calls for a closer look at the efficacy of professional Credit Card Debt relief services in helping you deal with your credit card debts

Credit Card Debt Relief: Once again emerging as a Menace in America

Taking from what has already been mentioned about the credit card balances of the US citizens, here is a glimpse of some relevant figures

  • The combined credit card figures of the US are well poised to cross more than $60 billion dollars than what they were in the previous years
  • The average credit card debt in places like New Jersey and Alaska ranges from $4,593 to $4,653 (as high as that!).

Now, the aforementioned figures have got experts thinking. It is true that the Americans have paid their debts more religiously than earlier. Still the current figures go on to prove that the Americans’ attitude towards debts has hardly changed. Though there is an increased urge to repay debts on time, the overall trend of depending heavily on them has not altered. And, this is worrisome though there is still time before the debts hit unsustainable levels.


Should you consider credit card debt relief services?

There is no dearth of credit card debt relief programs out there. Resorting to one of these programs might turn out to be the only option in such circumstances. Piling debts can be a result of various situations ranging from unwise spending to unavoidable circumstances including medical emergencies, unemployment and others.

However, before signing up for debt relief companies it would be important for you to understand whether at all the particular program is designed to meet your needs or not. An especially notable piece of advice would be to find out how fiscally conscious these programs are making you. Consumers generally tend to have a very short memory whereby they tend forget about previous economic lows just because they are presently experiencing a boom— thus believing it to continue for a considerable length of time— till they are forced to live from paycheck to paycheck again. One of the major responsibilities of your credit card debt relief program would be to help you align your finances keeping the economic difficulties triggered by Recession in view.



25 Quick And Clever Ways To Save Money

Many claim that saving becomes more and more difficult due to the high cost of living. This may be true in a sense, on the other hand, saving money seems impossible at times because of how we treat money. We allow money to easily slip through our fingers sometimes without giving it a moment of thought. Then we find that saving is not an option right now and that is how the act of saving money seems challenging. Saving does not depend on your income or your expenses, here are ways to help change the way you handle money in future:

A green button with the words Erase Debt on it 1.       Stop Making Debt

Often you might say or hear someone say “Saving is not an option for me now, I have way too much debt”. But the very next day we get ourselves further into the very situation that is believed to obstruct the act of saving money. Refrain from using any credit facility to make purchases, even if it means cutting up all your credit and store cards. The less debt you have the more opportunity there would be to save money.

2.       Don’t Pay Interest Unnecessarily

Debt prevents most people from saving money due to high interest rates that consumers are obligated to pay as a result of buying now and paying later. Small purchases made on credit is reason why many consumers fall under the debt trap to begin with. Purchasing an item worth R200 on credit with a payment plan of 12 months on an interest bearing account is one example of paying unnecessary interest.  Save for a couple of months to buy the item cash instead to spare yourself from paying interest for an entire year for small purchases. The money that you would have contributed towards interest could have been saved for future purchases.

3.       Settle All Debt

Compile a list of all your debt related expenses such as accounts, store cards, credit cards, personal loans etc. Work on a strategy to decrease the amount of debt you have. One way to realistically do this is to focus on one account at a time until it is settled. Select the account with the lowest balance as a starting point to slowly change the way you deal with debt. Make it a priority every month to pay double the total due amount, for example a store account with a 12 month payment plan can be settled in 6 months by using this strategy. As soon as the account is settled follow this process with the next account until eventually all your debt is squared up. The freed up money you find yourself with after having no debt can go towards saving.

4.       Consider Debt Consolidation

For those battling to keep up with debt repayments should apply for debt consolidation. It has its pros and cons, but at the end of the day you have more of your income at your disposal each month allowing you to cope with living expenses as well as making it possible for you to focus on saving money.

5.       Purchase an Investment

The only justifiable interest bearing purchase is an investment such as purchasing a house. A home loan is considered an investment because it is one of your assets. Therefore, investing in property is a great way to save money as opposed to renting. Think of it this way: the money that you spend on rent over 10 or more years could have been used to pay almost half your bond.

6.       Pay Extra on Your Home Loan

By ridding yourself of all insignificant debt obligations, you now have a lot more funds at your disposal. A smart manner to make use of the additional funds is to commit to paying extra on your home loan instalment each month. This could reduce your payment term noticeably, depending on how committed you are in settling your home loan. Also the amount of interest you pay drops, saving you money long term.

7.       Open Multiple Savings Accounts

You save money to accomplish various things and one savings account is not enough. Have a savings account for each goal you want to achieve for example, one savings account for that holiday you planning, another to renovate your home and not forgetting the most important savings account: your emergency fund. This is a useful way to save as it allows you to monitor how you progressed in reaching each goal. Set up the amounts you want to deposit into each account depending on whether it is a short or long term goal and the total amount you need for each occasion.

8.       Save First Then Spend

We often determine the amount we are able to save by first calculating all our expenses then allocating what is left over to a savings account. It should be the other way around, you first need to reserve money for saving before deciding what you should spend your money on. Never leave saving as an afterthought, it should be your main concern.

save-money-using-home-depot-coupons9.       Budget for Saving Money

List saving as an expense when doing your monthly budget and be sure that it takes priority over entertainment. Working it into your budget is one way to ensure that you save dutifully and you would see growth in no time.

10.   Deduct Savings Deposit from Your Salary

Many times we open that savings account and make deposits for the first couple of months and thereafter we find other ways to use that money. Allow your savings account to debit the specified amount from your salary. This way you are guaranteed that you regularly contribute to your savings and the habit of saving is forced upon yourself.

11.   Not Spending Money Equates to Saving Money

One of the easiest ways to save is to simply not spend money. By deciding against making an unimportant purchase you have already saved money. A fancy savings account offering the highest interest rates is not the only solution to saving money. Sticking your money in a jar is also a means of saving and to make sure that it stays there for longer is to just leave it alone instead of finding reasons to spend it.

12.   Justify Each Purchase

Before making any purchase ask yourself if it is needed or wanted. And classifying the purchasing of coffee every morning before heading to work as a need is not justifiable. Drink water instead because it is healthier and free. If there is another solution that involves spending less or no money then the purchase is not justified. Choosing the less expensive option allows you to save money.

13.   Always Negotiate

The ability to drive a good bargain is a useful skill to have especially when making big purchases. Seize any opportunity to negotiate with the seller to lower the price. Target independently owned shops and stalls, most times they are willing to negotiate to make a sale.

14.   Purchase Second-Hand

Before heading to the store, try and find want at a second-hand store. You can get it almost for half the price compared to purchasing it brand new. Just make sure that it is worth the bargain and in good condition before buying anything second-hand as you would not receive a warranty.

15.   Generic Brands

Keep your eye on the price rather when shopping and opt for generic brands as they are always the less expensive option. It never hurts to choose the less popular brands that looks and functions the same as the household brand names. When trying to save money it pays to be oblivious to name brands.

16.   Find a Substitute for Money

Thinking of purchasing a relatively expensive item? Hit the classifieds or trading websites to find someone who is willing to make a swop for an item that you have of the same value. By swopping you kill two birds with one stone as you get rid of the item you don’t want and receive the item you want at the same time without it costing you a cent.

Or maybe someone you know has something to sell that is of interest to you. Instead of buying it cash, think of something that you could do as payment for getting that particular item. The less you spend on purchases the more you are able to save money.

6953588530_6a2339de6c_n17.   Sell Unwanted Goods

When in the business of saving money you should never just throw away items of value that you no longer need or want. Use the classifieds or trading websites to sell your goods to put a few hundreds back into your pocket.

18.   Join Loyalty Programs

Be rewarded by merely shopping or making use of a service. Loyalty programs are exceptionally helpful in assisting consumers to save by issuing coupons or vouchers to use against future purchases. These rewards allow you to save hundreds or sometimes thousands on grocery shopping annually.

19.   Do Not Get Lured into False Bargains

Be aware of promotional offers that trick you into buying things that you do not need or in excessive quantities all because it is a special offer. This is where your justifying purchasing skills come in handy when deciding the worthiness of the offer. Many people try and justify pointless purchases by claiming that it was an offer they could not refuse. You are not always the winner when buying 5 items for the price of 4 when you really only need 1 of it.

20.   Quit Habits That Cost Money

Start by quitting cigarettes, it is an expensive and unhealthy habit. Many smokers will finish a packet of cigarettes a day. A packet of the average brand of cigarettes costs about R21. As a smoker, you are literally blowing close to R600 a month. Money which could have contributed to your savings account or even to settle some debt.

Non-smokers are not off the hook, there are many other habits that people indulge in that cost quite a bit on a monthly scale. For example, buying fast food for lunch every day. A reasonably priced meal costs about R30, which also amounts to R600 a month spent that could have been saved by making the effort to pack in lunch instead.

21.   Generate Extra Income

Rent out a room or turn your hobby into a small business to supplement your income. Deposit the money straight into a savings account or use it as additional payment on debt.

22.   Share Costs

Share daily costs with family, friends and colleagues by clubbing for various purchases and making use of the goods or services together. For example, find someone to share a gym membership with on one of those 2 for the price of 1 contracts that are on offer. Or start a lift club to share the cost of travelling to and from work every day. As a result you spend a fraction of the cost for things you would have paid full price for had you done it alone.

23.   Review Your Banking Methods

Inspect your bank statement to check that you are not paying more than you should on banking fees. Find a method of banking that is suitable for your needs as well as cost effective. Cheque accounts usually work best to manage your salary. Open a cheque account if you do not already have one and choose one that would complement your monthly banking transactions.

24.   Review Car Insurance Options Annually

Every year the value of your car drops, make sure that you are not paying too much on your car insurance premiums. Get quotes from different insurance companies annually to find the best deal.

25.   Start Life Insurance Early

Applying for life insurance later could cost you. See that you are covered to dodge the high premiums you would have to pay each month. Getting life insurance at your earliest convenience helps you save thousands of rands.

Danielle van Reenen is a senior writer at, one of South Africa’s leading financial advise portals.

6 Ways to Relieve the Perceived Hopelessness of Insurmountable Debt

6 Ways to Relieve the Perceived Hopelessness of Insurmountable Debt

Do you feel as though you are drowning in debt, that you will never see the life preserver out there, let alone be able to reach it? If so, you are not alone. Not even close, actually. The world has seen a very different financial climate in recent years. Even the strongest economic areas have felt some of the pain it has brought with it.

Chances are if you are not facing a mound of debt, then you probably know someone who is. So, I am going to share some ideas with you on how to best survive these times, and build yourself back up to get back on track.
The most important thing to know here is that this does not have to be permanent.

1. Be Realistic

The first thing you need to do is take a realistic snapshot of your finances. This will help determine if you can do this on your own, need assistance, or should file bankruptcy. If you make enough money to pay your bills, but have struggled to do so due to lack of discipline, or temporary hardship, you might be better off doing this on your own.
However, there is help out there for those of you who are struggling a bit more than the average person, such as when the ‘temporary setback’ is turning out to be much longer than the bills can handle. Debt consolidation is one avenue you might consider.
This is where you typically pay a fee to a company that goes to bat for you in consolidating your debt, often cutting this debt down significantly. With the right company, you could get out of debt quicker, and pay less…even when factoring in their fees. Do a little research online to learn about your options, as well as get debt help, and advice.
The last option would be bankruptcy, which will affect your life for years to come. More people are going through this than ever, and will be just fine someday. So, if you have no other option, don’t beat yourself up over it.
Regardless of which route you go, the next few tips should be carefully considered as a lifestyle change, to help prevent this from happening again…and to get back on your feet quicker, which is what is most important.

2. Downsize as Best You Can

Take a look around to see what you can do to downsize. Of course, some of these choices might be difficult. If you have more cars than you need, sell one…or two. If the house is bigger than you can keep up with, sell and move to something more realistic.
Most households have more than one TV, game system, and more clothes than they could possibly wear in any given season. Have a garage sale, and then apply what you make to some of your debt. I’m not saying you have to get down to bare walls and a skeleton closet, but we all need to live within our means, even if that ‘means’ changes unexpectedly.
Bottom line is, if you have boat that you only used 3 times the entire boating season, sell it.

3. Lower Your Bills

Of course, we need to live…and not sit in the dark twiddling our thumbs. So, let’s take a look at what we can do to lower our bills, rather than shut them off completely.

  •     Mortgage – refinance, if you can, to get a lower rate. This will not only lower your monthly payment, but also lower the overall amount you pay in the long run.
  •     Utilities – Shop around for the best price for things such as cable, Internet, and phone. If you can’t, or don’t want to switch companies, call them to see what you can do to lower your bills. Most companies will work with you, rather than see you leave.
  •     Usage – Turn off what you are not using, including lights, water, and appliances. Turn the heat down or air up if you are not home. Even if you are, put a sweater on in the winter, or wear shorts in the summer.
  •     Insurance – Call your agent to see what you can do to lower rates. Again, they will want to work with you, rather than lose you. If not, look elsewhere.
  •     Food – Save money by getting creative with leftovers. For example, our local market has these wonderful cooked whole chickens for under $6, which can turn into at least 2 meals if you make a soup out of the leftovers.

Take a look at your bills, one at a time, and ask yourself how you can lower it. There are ways to lower most everything.

4. Set a Budget

Don’t just talk about spending less…set a budget to make sure you do. There is software available to put this all online, which will make it very easy for you. Keep track of every dime you make and spend, as well as receipts to make sure you are entering everything in…and I mean everything. If you buy a pack of gum, enter it.
You might be surprised at how some of your money was spent.

5. Pay off One Debt at a Time

The bills that can…and should be paid off, such as credit cards should be organized by how much you owe, and what the interest rate is. Paying one bill off at a time will help you pay down your debt quicker, than trying to pay it all off…because you will end up paying minimum payments and more interest in the end.
So, if you have 3 credit cards to pay off, try paying off the smaller one first. Then, take that payment (that you no longer will have) and apply to the next one you target. As long as you don’t keep charging, there is an end in sight.

6. Think Positive

Finally, think positive, as difficult as that might be for a while. If you are taking steps to relieve your debt, your day will come. If you let it get to you, it will make things worse. Depression can easily set in when struggling financially, and can lead to a lethargic state of mind and physical condition. When that happens, it makes it difficult to get out of anything, including bed.
Keep your chin up and keep looking forward. Learn from this, make some lifestyle changes, and you will be fine.

About the Author

Kathy Barber is a freelance writer, who writes on topics such as medical, online business, and home brewing. Her latest series was inspired when talking to others about on how to reach financial freedom. She did most of her research online and found very helpful. Kathy lives in Michigan with her husband and son. When she is not working, she enjoys time with the family, cooking, entertaining, music, and photography.

Why should you Borrow to get ahead when using Debt Leverage?

Why should you Borrow to get ahead when using Debt Leverage?

People borrow money for every reason. Whenever they need money, they look towards banks, friends or financial institutions to help them. However, the reason for the loan is not always justified. People take loans for all sorts of crazy reasons – a party, an outing and other unnecessary expenses. These reasons might be unjustified; however, there are some really genuine reasons that call for one to go under debt.

Debt looks unnecessary, but there are cases where there is no way out but to take a loan. Some of those conditions are given below, explaining when and why you should borrow money to move ahead in life.

To Save Your House

A great number of houses are mortgaged in the US. People are living in the fear of losing their homes to their lenders. This is one thing that scares all home owners. If you are facing the risk of foreclosure, then taking out a loan to paying back your debt is a good option.

However, this is not the only option that one has in such situations. One should always seek help from a lawyer who specializes in such cases to find the best option out of this situation. One more thing to remember is not to make the same mistake of putting another property on the line to save one property, as it will not do you any good.

Almost, all the banks will require some kind of collateral to give you a loan; however, some companies or lenders might be willing to give you a loan to save your house on certain conditions. This option should be used when you are sure that you will not end up in trouble.


If an investment opportunity comes your way that can benefit you, then taking out a loan is a good idea. Risks are important in life and one can never move ahead in life without taking risks. However, one thing that is important is to minimize the risks involved. This isn’t easy but one should be able to do it before opting for loan.

Foresightedness is required as these are very major decisions and cannot be made in haste. You can consult a professional or your friends to make sure the step you are taking is worth it. Not every investment gives the desired returns and can at times put you in serious financial trouble.

One more thing that you will need to do is find the difference between the profit you will earn out of the investment and the interest you will pay on the loan. If the profit isn’t more than the interest, then the option is pointless and something that should be totally avoided. However, if good returns are guaranteed then this is the best thing to go for.

Debt Consolidation

Debt consolidation to pay down higher interest rate loans is a good reason for taking out a loan, especially if you are sure you can manage it well. If you are already burdened with a loan that required you to pay huge interest, it is a good option to take a loan from a friend or a bank that is giving it at a lower interest rate so that your burden is reduced.

However, it should be managed well as it can, like any other loan, cause problems. Also, when you go for this option, make sure the terms and conditions of the second loan are friendlier than the former one, because if they are the same then going to another lender will not be a good idea as it will not help you in any way.


Loan for education is usually acceptable; however, it depends on many factors. Firstly, consider whom you are going to sponsor for education, and if the person is worth it. There is no point in taking out a loan for someone who isn’t good at school, as the person probably will have difficulty finishing college, graduating, finding a job and then paying back the loan. However, this is very difficult to conclude due to the desire and importance of getting educated.

Many institutes and colleges have their own debt programs that are often interest free to promote education. This option should be considered as it can be of great help.

What are they and what are the differences between debt consolidation loans and debt management

What are they and what are the differences between debt consolidation loans and debt management

A friend of mine had recently mentioned to me about the confusion between what is a debt consolidation loan and what is debt management.  This didn’t really surprise me as many consumers, borrowers, debtors, etc, can be confused by the various loan products and banking/financial terms used today.  Basically unless you are in the banking industry, or a debt adviser, you may not fully know the differences between these two very different options.

Debt management is where someone may be struggling with various credit cards, overdrafts, loans, etc and can no longer service the debts in accord with what the accounts or their creditors are asking for payments each month.  So the debtor, seeks help and assistance via some other form of repayment, usually through a third party, in managing the debts through alternative means.

This assistance can be in the form of a DMP/Debt Management Plan, or possibly an IVA/Individual Voluntary Arrangement.

Debt consolidation is where someone may take out a loan to consolidate, or pay off the smaller loans and credit cards they may have.  This gives them one monthly payment, and in some instances a lower monthly payment, than what they had previously been paying to the smaller multiple accounts.

Debt management is not a form of a loan and no money is lent, whereas debt consolidation is a loan that is applied for from a bank or lender and can be granted or denied.

In debt management you are usually in arrears with a loan or credit card and this has affected your credit, and by being in some form of debt management, this also affects your credit.

Debt consolidation does not affect your credit, and you may have poor credit prior to receiving the loan, but for some people, the deb consolidation loan itself may help to improve their credit.

Both, debt management and debt consolidation allows you to make one monthly payment instead of multiple payments.  With debt management the monthly payment is based on what you can afford and again impacts your credit.  In debt consolidation the monthly payment can be less than what you previously had been paying to the multiple accounts, and it doesn’t have a negative mark on your credit. The debt consolidation payment is based on how much you are borrowing, the interest rate, and for how long you are borrowing the money.

So in discussing this with my friend, I asked him how he determines which option is best for his clients.

He stated, if someone is currently in arrears with their credit cards and accounts/loans and possibly has experienced a major change in their finances, hours cut at work, made redundant, etc, and then debt management may be a stronger option for them.

If they are just looking to reduce their monthly outgoings and want to budget a bit better, then a consolidation loan may be a better option for them.

If their credit is already showing late payments and defaults, then a form of debt management may be the way to go.

If they are concerned about your credit rating and want to maintain it, then debt consolidation is what they may want to look more into.

So there you have it, straight form the horse’s mouth, so to speak, not only the difference between debt management and debt consolidation, but also a professional’s advice on which may be best suited for someone.

Five Tips for Avoiding Consumer Debt in College

Five Tips for Avoiding Consumer Debt in College

Although some people are able to fund college entirely with their own money and grants, most people graduate with at least a little student debt. Paying off student loans can take years and set you back financially when you enter the workforce. You don’t want to compound the problem by adding consumer debt to the mix. Credit cards have high interest rates and can easily seduce shoppers into living beyond their means, causing major financial strain. Here are a few tips for getting through college without relying on credit:

1. Understand how interest works.

It’s hard to appreciate just how ruinous credit card debt can be without knowing how interest is compounded. Take some time to learn about credit cards and see how the interest can quickly multiply a purchase beyond its original price. Seeing actual figures will really help to put things in perspective.

2. Make a budget.

Tracking all of your expenses might not sound like much fun, but it’s the first step to taking control of your spending. Don’t think of it as a way to limit yourself; think of it as a way to make sure you can afford the things you really want. Write down all of your expenses and set limits for how much you will spend in a given month on certain categories. When you reach your limit, you have to stop spending or take the money from another category. This way you’re sure to only spend the money that you have without borrowing.

3. Use layaway.

Instead of financing purchases, save up for them or use layaway programs whenever possible. By saving up for a purchase a little bit at a time, you can be sure you’re not paying more than you need to for expensive interest rates or hidden fees. You can also save money by buying used goods or finding low-price alternatives to expensive brand names.

4. If you do get a credit card, make it a good one.

You may never get as many offers for credit as you do in college. Take advantage of the variety by choosing a credit card with a low interest rate, reasonable spending limit and no annual fees. Maintaining this one single line of credit will help improve your credit score and make it easier for you to get a car loan or mortgage later.

If you are still strapped for cash after attempting the aforementioned tips, then it is time to consider online school. Web-based colleges allow you to not only learn on your own time, but also to save a significant amount of money on room and board, travel, supplies, and sometimes even tuition. Most brick and mortar universities allow online credits to go toward their degree, so it can’t hurt to see if this option will work for you. Requesting more information is free and it can make the difference between a successful career and crippling debt, so don’t hesitate to look into it.
5. Always pay off your balance.

If you have a credit card, be sure to pay off the balance of your purchases every month instead of carrying a running balance on the card. This will keep interest prices down and looks great on your credit score.
Credit card companies frequently target college students with appealing offers, and it can be hard to resist apparently free money when you’re a struggling student. Don’t allow yourself to be lulled into accepting all the credit card offers you receive, though. By learning to live within your means in college, you make the first step toward financial freedom for the rest of your life.

How To Get Out Of Debt – Fast!

How To Get Out Of Debt – Fast!

Are you hopelessly in debt? Have you maxed out your credit cards and feel like you have nowhere to turn to? Is your net worth now in the negative? Don’t despair. There is a way to change your current situation. You can still turn things around and make it better. Let me reveal to you 4 steps on how to get out of debt – fast!

First, plug the hole. If there is a leak in your tub no matter how much water you put in, it can never be full unless you plug the leak. In the same way, in order to get out of debt find out why you are in debt in the first place. Track down your expenses and determine where the bulk of your money has been going. Has it been going to shopping sprees, eat outs or expensive vacations? Figure out where you are putting your money and take control.

Second, cut back. You are in debt because of one simple reason: you are spending more than you earn. No matter how much you earn your expenses will always be in proportion to your income. The solution to this is to live beneath your worth. Do not overspend. Cut back on unnecessary expenses. If you have been going to an expensive gym then opt to go jogging instead. If you have been eating out 3x a week then cut back to once a week. If you enjoy going to movies every weekend chose to watch dvd’s at home. It is the little things that matter and these will make a big difference on your bottom line.

Third, cut down your credit cards. You do not need 3 or 4 credit cards. You only need one. So if you own 4 cards cut the other three in half and just leave one for emergency use. Credit cards are not evil. They are neutral. But in the hands of undisciplined people they can be dangerous. If you are not careful they can be the cause of your financial downfall. One disadvantage of using a credit card is that it makes spending much easier. Why? Because you don’t see money disappear. It’s a lot harder to hand over a thousand bucks than your credit card. That is why it is much harder to control yourself when you go shopping with your card. To minimize temptation always buy in cash.

Fourth, save at least 10 % of your income. When it comes to money it doesn’t matter how much you earn. What matters is how much you keep. So every month put away at least 10% of your salary. Never touch it. The only time when you can touch that money is when you are going to invest it. This will allow your money to grow and will provide you with the knowledge that you will never run out of money.

Amy C. is an interior decoration aficionado and online marketer.  She also likes testing and trying new home and office decorating themes.  In addition to being an interior decoration hobbyist, she enjoys designing calming solar fountains and glass art.  Amy invites you to browse her delightful collection of glass vases

Advice To Think About When Designing A Debt Relief Budget

Stop The Bleeding

Whether it’s those niggling fees that suddenly appear on your checking account statement seemingly out of nowhere — though intermittent use of check cards without writing down notes all but guarantees that you’ll sooner or later miscalculate the balance amounts and be stuck with the (increasingly exorbitant) penalty — or the charges assessed by creditors for late arriving payments, your debt relief compensation schedule cannot afford any unplanned and unnecessary expenses.

 Choose Your Friends Wisely

There are countless reasons to explain why Americans of any age have amassed their collection of friends (plus acquaintances, workmates, drinking buddies, and on down the line), but rarely do you hear anyone outside of rather mercenary romantic partners spark up a relationship singularly because of a respect for the other’s fiscal discipline.  While you can’t be expected to drop friends entirely because of their spendthrift tendencies, there’s no harm — and, through the course of credit card debt relief, potentially dramatic savings — in distancing yourself from the actions of folks whose spending habits indicate either substantially greater incomes or worryingly limited economic sense.  True friends will appreciate that you’re making a concerted effort to change your problematic finance and not suggest that you forget about your budget for the night.

 Give Til It Hurts

 Yes, this piece of advice may well run counter to everything else you’ve picked up regarding debt relief programs, and we’re hardly suggesting any borrowers already fighting against consumer finance burdens would do themselves a favor by truly going out of control with a charitable frenzy.  At the same time, though, you don’t often hear about folks trying to avoid bankruptcy protection because they’ve over spent on their last batch of donations.  More to our real point, the long and laborious road of debt relief requires that serious practitioners not just temporarily keep to the budgetary strictures as defined by a credit counselor or debt settlement professional.

Actually wiping away the whole of your credit card debt load intrinsically calls for reshaping the way that you think about purchasing transactions.  Continuing to make even the most monetarily negligible gifts month after month (or annually, depending upon the construction of your fiscal regimen) might not technically shrink the size of your bills, but studies have demonstrated that such regular acts of planned charity helps reduce the temptation for those shopping binges ruinous to enlightened debt management.

 There’s No Such Thing As A (Half Price) Lunch

Any borrowers pursuing a credit card debt relief plan will in all probability end up missing the guilty thrill of pointless purchasing nearly as much as the actual goods and services that they had formerly bought whenever sensations of boredom, depression, or even a whimsical mania overwhelmed the natural predilection to save and provide for the future.  To that end, though this tip may also seem counter intuitive to the normal messages presented in consumer friendly literature and debt relief handbooks, you’ll want to be careful about transferring over your more keening shopaholic urges to a crazed coupon cutting delirium.  Just because an item may have been discounted does not mean that it’s still a vital need, and forgetting about budgetary dictums to indulge even the superficially finest deals only worsens debt problems over time.

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