I bet that you’re asking yourself “How in the world did I get myself into this mess?” How did those tiny little credit cards turn into big, scary monsters of debt where no matter how much I pay off, the balance never goes down? How did the dream house I bought lose so much value that it’s just not worth as much as what I paid?
It’s not your fault that this is happening to you, and you should not feel embarrassed or scared to face the cold hard facts…
- You are in debt.
- You are not the only one suffering.
- The bleeding has to stop today.
- You are capable of turning this debt around and start saving money for your amazing future.
I am going to provide you with some helpful ideas that will kick start you… just in time for that New Years resolution!
Stop Spending
This sounds very obvious but it is very true. It’s not what you earn, it is what you keep that matters. This week, look at one of your regular expenses. It could be buying coffee everyday before work. It could be spending cash on magazines and newspapers. Maybe it’s the amount of take-out you’re ordering every week.
You need to stop those purchases now, or at least drop them down to a ’special treat’ status of once a week or once a fortnight.
Work out what the savings are by not purchasing these items and then pay that money directly into your credit card. I tell you, it’s a really nice feeling watching that balance come down after you have worked hard to achieve that goal.
Drive less
Gas is one of the luxuries in our lives. Learn to live without it just a little bit. Start by taking the bus or the train to work. Ride your bike daily, even if it’s just to buy milk and bread. Start carpooling… it’s great for the environment and a wonderful way to share the cash savings with a work friend who may well be feeling the pinch as much as you. Once again, work out what your weekly cash savings are on gas, and then move that money on a weekly basis into your credit card.
Sell things
I know that selling your things can be difficult, but it’s better to earn some cash from some of your items now rather than leaving this until the bitter end when you have run out of money and are forced to sell. eBay is a great place sell these items. Begin by selecting a couple of items that you have not used in more than a year and list them on eBay. You will be amazed what other people will pay for items that you don’t use anymore.
You must commit to every penny going into your credit card account. You will be so motivated to sell more once you see the benefits of paying down the card!
Another way to save
If the government delivers even the smallest tax cut to you, you must place those extra dollars straight onto your debt. It was money that you did not have yesterday anyway, so you won’t miss it it goes straight your debt reduction activities!
You’ll find that your debts will be paid off really quickly if you begin implementing these ideas today. Once you get to a break even point, you will experience the joy of putting those extra savings into your savings account, where you can start building an investment nest egg.
Posted under fix bad credit, fix bad debt, manage your finances, savings
This post was written by fixbadcredit
