You don’t have to get a second job or pinch pennies unless you want to! You can get out of debt fast using the money you already bring home.
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Why can’t I Gain Control of my Debt?
by Samantha Asher
Debt is an ugly word. Usually while it is building up it is not a concern, but there comes a point in time when debt blows up in your face. It becomes more than you can handle and causes problem after problem. If you have credit card debt, you are in the worst kind of trouble. The more your credit card debt piles up, the higher the interest rate goes and the faster it shoots up. It can seem like you have no control of your life. If your debt is mostly student loans and other loans, you are probably paying a lower interest rate, but it can still be very burdensome. If all you have is a home mortgage loan, you should only be worried if you aren’t able to afford the monthly payments. Why can’t you gain control of your debt? Once your debt is out of control it seems near impossible to get it back under control. It is true that it will be very difficult to get it under control, but it is not impossible. In order to change your financial life around you need to first make a commitment to it. You need to promise to yourself that you will do anything to get yourself out of it. No matter what anyone tells you, you DO NOT want to declare bankruptcy. Fortunately, you don’t have to if you have willpower, drive, a plan, and fulfillment of that plan.
Next, you need to organize your debt. Who do you owe money? Do you have credit card debt, student loans, car loans, personal loans, any other loans, or a combination of any of these? List out all your loans along with how much you owe on each. Put the loans with the highest interest rate first. You will need to pay these off first. You must pay the minimum payments on all of them in order to maintain good credit, but you want to put more money towards the one with the highest interest. Next you need a plan to pay this. If you are over $100,000 in debt, or even only $10,000 in debt but have a low paying job, you need to make some severe cuts in your spending. Cut out any unnecessary expenses such as cable, only one phone (not a cell phone and a land line), eating out, shopping for anything but necessary food, etc. Cut out everything that isn’t a necessity. Make a budget listing all the things you need to pay monthly. Include all the minimum payments for your loans. Anything left over will go towards the highest interest loan. If there isn’t anything extra, keep cutting. If you can’t cut any more, downgrade your living. Sell your house and rent something cheap or move in with family if you can until it’s all paid off. Some of these things may sound severe. The truth is, debt is severe and you need to get rid of it. The only debt that is okay to have is a mortgage. This means a reasonable mortgage, too. Buy only the house you need and can afford. If you can’t afford the monthly payments, don’t get the mortgage. If you can pay off all your debt in a year or two, you are on the right track. Get going! About the Author Do you want to learn more about financial planning for retirement? Find out more about financial planning at FinancialPlanningMadeEasy.info.
