5 Ways to Get Yourself Out of Debt
October 22, 2008
Getting into debt is fun, isn’t it? Getting out of debt? Not so much fun. That’s why you need a game plan. This article will show you five essential keys to getting yourself out of debt. It won’t happen overnight, but it is possible.
1. Make a budget. One of the first things you need to do to become proactive is to create a budget for yourself. You should include all your debts as well as your monthly income. Creating a budget will help you allocate funds for every bill. It will also help you see where you’re spending in excess.
2. Pay off small bills first. If you find yourself with extra cash at the end of the month, apply that extra money to your smallest bills. Get those paid off as soon as possible and you’ll free up more money every month that you can apply to paying off other bills.
3. Cut up the credit cards. I heard the gasps of horror out there. Credit cards are addictive and are extremely detrimental to your credit and to your money flow. Even though they are convenient, they are also deadly. Don’t wait until you’ve paid them off. Cut the cards up now, then start working on paying them off.
4. Pay your bills on time. One of the major pitfalls of many people is not paying bills on time. For every bill that goes beyond the due date, you pay anywhere from $20-$50 in late fees. You can see how quickly those late fees add up if you continue doing this on a monthly basis.
5. Save first, buy later. Put this principal into practice. If you see something you want, price it, then start saving for it. Once you have enough money saved, go buy it in cash up front. Chances are, by the time you have saved enough money to buy it, you’ll decide you don’t want it after all and may end up paying off yet another bill with that money!
