Don't dwell on the financial mistakes you made last year. Hold your head up high even though you may be in debt. Think about how you can change your spending habits, eliminate debt and create a flexible spending plan for yourself. Here are 5 easy tips to eliminate debt on go on to lead a prosperous financial life:
1. Stop spending. Don't spend money you don't
have. This will result in your owning more money.
2. Take inventory. Write a list of all of your monthly
expenses and your monthly debts and write down
you monthly income (take home). If you have any
money left over use that to pay down your debts. If
not, find other ways to reduce your expenses and
gain extra money the money owed.
3. Reduce expenses. Find ways to reduce expenses.
Catch public transportation or carpool to work. Use
coupons or shop at wholesales stores. Have a yard
sale or donate unused items to charity and write the
amount off on your taxes.
4. Stop Credit Card Usage. Use your credit card for
emergencies only. Don't use your credit card to
purchase gas, food, clothing, etc. When using a
credit card instead of cash you end up paying 112%
more than the item is worth after finance charges
and other fees associated with credit card.
5. Educate yourself. Educate yourself about credit
and your credit rights. Read as much information as
you can about credit cards. Start by reading the
credit card agreement or disclosure that was sent to
you when you first received your credit card in the
mail. If you can't find it call you credit card company
and ask them to send you one. Read the agreement
carefully to find out what fees you could be charged,
the grace period and other important information.
2 comments:
Mr. Hfreeman,
Many companies warn consumers about credit repairers. Yet at the same time the government regulates them. When a person rears large families on below minimums wages and without government assistance, warrants me that person is a well financers. I have problems adopting laws that places me in a tier pricing class categaory, when I pay my bills. Perhaps some bills may not get paid exactly on the due dates, however they are not extremely late. Yet I maintain them enough not to file for bankruptcy or some other nonpayment methods. Credit in my opinion only plays a part of invasion of privacy and money making scams, leading to identification theft. Because of my extreme fight against the personal differences of laws, my credits and content of characters are being conspired against. I am a good consumer who pays for services if correctly provided and a troubled one if they are not. Please explain how consumers can live up to economical changes, when in today's world while their wages have not changed.
Thanks!
Hi Aug2008, BTW, I am a woman. I know it is difficult and I have been there, there was a time when I had no money and no food, just a roof over my head. I made it through and I want to encourage others that they can do the same.
You have to make serious sacrifices to improve your financial situation. Some options are:
1. Go back to school or take training classes to increase your salary.
2. Reduce expenses, you may have to skip your hair appointment, buying designer clothes and eating a 3 course meal. I know of some people who eat hot dogs and beans everyday to save money so they can get out of debt.
3. Find ways to generate additional income - get a part-time job, sell old or unused items at a yard sale, donate blood, participate in studies, etc. are just a few ways to get extra money.
4. If you believe it you can achieve - if you believe you will always be in debt or have little to no money - then you will. You have to change your mindset and be determined that eventually you will get out of your current situation. I know this to be true because I did.
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