Many people who have never had debt problems in their lives are now struggling to make monthly payments as the ongoing financial crisis forces them to take on additional debt and, due to inexperience, they don’t know how to do it in a few simple steps. Lighten their load with ease.
Here are eight tried-and-true tips that will help anyone really want to get out of debt.
1) Reduce spending
Spend as little as you can without becoming a martyr.
If you go to extremes, then you’re likely to give up and go on a spending spree, which isn’t what’s needed.
Just doing something as simple as skipping a daily latte that costs about $4 a cup could save you $80 a month, and bringing food from home a few times a week could save you hundreds.
2) Go to the supermarket less
a) The whole psychology behind supermarkets is to make customers buy a lot more than they want, so every time you go into a supermarket, you’re likely to buy things you don’t need.
b) Always go to the market with a shopping list and don’t buy anything that isn’t on the list unless you really forgot something or really needed it.
3) Do not purchase any credit card insurance
Credit card companies make a lot of money selling several types of insurance that almost nobody needs, so check to see if you pay for it, and if you do – then cancel it!
4) Get rid of your landline
It’s unlikely you’ll need a cell phone and a landline, cell phone companies are now offering great deals on unlimited minutes, and you can chat for free with people around the world using free programs like Skype and GoogleTalk.
5) Drink tap water
a) Tap water is more regulated than bottled water and has come out on top in taste tests across the country almost every time.
b) 40% of bottled water is simply tap water, some brands have additives, some don’t, and many additives are actually unhealthy if you don’t change brands regularly.
6) Cut down on cable TV
Take a hard look at your cable package to see how much you’re paying for the shows and extras you actually watch or need, and cancel the rest if you can save money.
7) Use a zero percent credit card
Despite the credit crunch, many credit card companies are still offering introductory offers at zero interest rates, which is a great way to save money and pay off debt faster.
It’s important to note when the higher interest rates kick in and pay off the credit card with a new zero or low interest credit card before the higher rates kick in and be very careful to check how much you’ll be charged to move the outstanding balance from Transfer from one card to another.
If the fees exceed the interest savings you save, you will get nothing and possibly lose money.
8) Ask companies to lower interest rates
Many companies, if not most, will lower interest rates if you simply ask them to do so and they feel it is in their interest to do so, but be sure to ask whether this will affect your credit rating.
Few people seem to realize that the higher your credit rating, the less interest you will have to pay on the loan, and a good rating also makes it easier to swap your loan for one with a lower interest rate, so watch your Credit rating, if it’s good. However, if your rating is already low, then it goes without saying that you should try to get the lowest rate you can from everyone, since renegotiating the loan won’t have as much of an impact.
If you follow the above tips as much as possible, they will help you a lot, but if you decide to go the route of debt settlement or debt consolidation, you should only choose companies that are accredited by the BBB (Better Business Bureau). bad state and are considering bankruptcy, many attorneys in your area will be more than happy to give you a free appraisal, but be aware that even the simplest bankruptcy will cost you at least $1000 due to filing fees and charges, see It sounds crazy, but it’s true.
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