Start The New Year Fresh:
Get Rid Of Personal Debt in 2017
What do you do when your personal debt payments are more than you can afford? How do you manage when you realize that you can’t make it to the end of the month without getting even deeper into your credit card debt? The first step is to take a critical review of your personal spending patterns and start to make a plan to solve your personal debt problems.
Don’t turn a blind eye to your situation, ignoring the problem won’t help. If you don’t take responsibility and change your spending behavior, your debts will only get worse. Luckily, there are some simple solutions to debt. Here are some practical tips on how to solve your debt problems:
Reduce the Outflow!
We all overspend from time to time on things like clothes, food and alcohol, especially during the holidays. While it is fun to spend on the small pleasures in life, if you want to start to reduce your debts, you will need to change some personal spending habits. There are many things you can start to do to change your spending patterns. Try going to thrift stores, avoid eating at restaurants, and opt for nights in with friends. Suggest a pot luck or movie night instead of dining out or going to a pub. Minor lifestyle changes allow you to enjoy a healthier and happier life while avoiding spending money needed to pay down debts.
Have a Garage Sale and Tidy Up your Life.
If you look back at your spending patterns, you may see that some of your debt is from unnecessary overspending. This means that you have purchased items that are superfluous, and not being used. There is also a good chance that you have received some unwanted and less than useful gifts over the holidays. Crawl through your garage, go through the attic and other hidey holes and see if there are things that you can sell either online or at a garage sale. If you don’t have enough stuff, you can always combine efforts with a neighbor, or in fact the whole block!
There are many ways of selling second hand items online and you’ll be amazed at how many people find treasures in your trash. Focus on selling items with the highest sale price to reduce the effort. Set a goal that any money made by selling off old items will be used to pay down your debts and not to purchase anything else.
Increase your income!
Sometimes trying to pay off debt quickly means significant extra effort. Sort of like exercising – no pain, no gain! A limited income means that your debt repayment options are limited as well. If you have time and skill, consider getting a second job or starting an at-home business. If you have a great idea, now is the time to turn it into real cash results. Once again, make sure that you have a plan for this extra income so you can remain focused on paying down your debts.
Try to reduce borrowing rates
Occasionally, banks, credit card companies or store card companies, will reduce your interest rate if you are upfront with them about your debt problems. Look at your statements and find out how much interest you are paying for each type of debt. It is hard to get ahead of your debt issues when the interest rate is excessive. Start by calling the companies that are charging you the highest rates and ask for a lower interest rate, or if there are any options for moving to lower interest plans. Sometimes the company says no, but at least you tried.
However, some creditors will work with you to find a repayment plan that is more achievable for you. They will either temporarily lower their rates or offer alternate financial assistance.
Finding a debt solution is the first step to take control of your financial issues. Sometimes, even with your best efforts you cannot get out of debt on your own. If this is the case, you can seek the expert advice needed to assist you in solving these problems. The best place to start is with a free consultation.
The above steps are easy to implement and can help you make real changes for the better in your financial circumstances. It will take time and compromise before you are successful, but with patience and hard work your financial health will improve and with continued effort you can move out of debt forever.
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