All too easily we find ourselves in debt not really conscious of how we got there or how we can get out of debt. Debt means something owed to another or the condition of owing. Debt usually brings to mind owing money. Sometimes debt can accumulate so much it seems like there is a mountain of it and we struggle to know where to begin. The largest problems can be solved by simply having a starting point and progressing one step at a time. This article sets out to help you begin to reduce your debt so it becomes more manageable and you can enjoy life once again without the shadow of debt hanging over you. Debt can only be reduced by applying extra money to the amount you owe. To get started here are Fifteen Amazingly Simple Ways To Save money in order to apply to and Reduce Debt. * Make a plan. It's amazing how clear things become when you actually write down and look at your financial situation. Make a list of all your incoming finances. Now list all your essential outgoings , like mortgage payments, phone, utilities, insurance, car payments and groceries. Deduct the essential payments from the total of income. What you are left with is your expendable income and it is this that you have to pay for extras. If your essential outgoings are larger than your income then you are going to have to do some serious belt tightening exercises beyond the ones you will find here.* Stop using credit cards. The cost of something becomes much more real if you pay with cash. If you are already finding it hard to keep up with credit card bills now...........then don't keep using them. The problem will only get bigger if you don't. * There are enough credit cards around that you should not be paying an annual fee on one. If you have a card that charges an annual fee, change to one that does not. * If you have spare credit on cards with a lower interest rate, do a balance transfer from your card with higher rates. * Consider taking out a low interest loan and payin g off high interest cards - but once they are consolidated - do not start using the credit cards again. Put the money saved into a savings or emergency fund. * If you get paid weekly or fortnightly and are able to make 2 payments to a credit card a month instead of one you would pay slightly less in interest fees. Simply break the required payment into two parts. You may even find yourself able to slip in another few dollars thereby further reducing the debt. * Any time you sign up for a service and there are fees ask for these sign up fees to be waived or reduced. More often than not the company will accommodate your requests to gain your business. * To reduce debt you must earn more than you spend and the greater you can make that gap - the quicker you will be able to add the "money saved" to the money owed and therefore reduce your debt. Think about ways you can increase income or reduce spending to enable you to meet this goal. * Check your cell phone, your home phone, y our insurance policy; are there extras you are paying for that you do not use? Is your insurance applicable to your needs? Get rid of unnecessary costs. * Investigate your bank account. Are there charges on it? What are they for? Is there another bank that will do the same job free or for less charges. Consider changing. Ideally you should have a bank that has no fees and pays you interest. After all it is your money.* We pay most of our bills online. There is no cost for postage or checks. Plus we can ensure the money is recorded on time. We tend to do this each time a bill is due but it is also possible to set up automatic online payments of the minimum due to ensure money is received on time thereby avoiding a late fee. Then if you have extra money you can simply make another payment at your own discretion. * Clean out closets, basement, attic, rooms, garage, sheds and workshop. Look at each item and determine if it is something you need, use or treasure? See if there are things you are no longer using or need and sell them via Garage Sales, Ebay, Craig's List, or Consignment shops. There is a saying 'one man's junk is another man's treasure'. So sell what you can.* Maybe you are in a position where you can do other things to increase your income. Do some extra hours at work, take on a part time job, do some services for payment like tutoring, lawn or garden maintenance. * Do a little research on grocery stores. It is surprising just how much you will save by spending a few less cents on every item. * Visit second hand stores or used equipment stores and consignment shops when you are looking for certain items. It is quite possible to find good buys of new and next to new items in these stores at a fraction of their original cost. Don't become discouraged. We tend to live in a society where we have been led to believe we 'NEED' so many things but in stark reality most of these things are merely 'desires'. It is self gratification which does not keep us happy for very long. Or we are being influenced by others and trying to live at a standard that we cannot afford. We need to look at our lives honestly and determine what we want. Being in debt can cause a high level of stress which robs us physically and mentally. It robs our loved ones of precious time with us. How wonderful to live a less stressed life and be able to spend more quality time with our loved ones. When I speak to youth today about what they would like to have more of.... they often say their parent's time. Let's invest our time and efforts into our family - they are the best investment we have. This is a beginning but you can get more help and advice from Scott Stephen. He probably knows more about debt consolidation and facing bankruptcy than just about anyone. You can find out more just Click Here! for an amazing plan that can lead you to becoming debt free.
* Make a plan. It's amazing how clear things become when you actually write down and look at your financial situation. Make a list of all your incoming finances. Now list all your essential outgoings, like mortgage payments, phone, utilities, insurance, car payments and groceries. Deduct the essential payments from the total of income. What you are left with is your expendable income and it is this that you have to pay for extras. If your essential outgoings are larger than your income then you are going to have to do some serious belt tightening exercises beyond the ones you will find here.
* Stop using credit cards. The cost of something becomes much more real if you pay with cash. If you are already finding it hard to keep up with credit card bills now...........then don't keep using them. The problem will only get bigger if you don't.
* There are enough credit cards around that you should not be paying an annual fee on one. If you have a card that charges an annual fee, change to one that does not.
* If you have spare credit on cards with a lower interest rate, do a balance transfer from your card with higher rates.
* Consider taking out a low interest loan and paying off high interest cards - but once they are consolidated - do not start using the credit cards again. Put the money saved into a savings or emergency fund.
* If you get paid weekly or fortnightly and are able to make 2 payments to a credit card a month instead of one you would pay slightly less in interest fees. Simply break the required payment into two parts. You may even find yourself able to slip in another few dollars thereby further reducing the debt.
* Any time you sign up for a service and there are fees ask for these sign up fees to be waived or reduced. More often than not the company will accommodate your requests to gain your business.
* To reduce debt you must earn more than you spend and the greater you can make that gap - the quicker you will be able to add the "money saved" to the money owed and therefore reduce your debt. Think about ways you can increase income or reduce spending to enable you to meet this goal.
* Check your cell phone, your home phone, your insurance policy; are there extras you are paying for that you do not use? Is your insurance applicable to your needs? Get rid of unnecessary costs.
* Investigate your bank account. Are there charges on it? What are they for? Is there another bank that will do the same job free or for less charges. Consider changing. Ideally you should have a bank that has no fees and pays you interest. After all it is your money.
* We pay most of our bills online. There is no cost for postage or checks. Plus we can ensure the money is recorded on time. We tend to do this each time a bill is due but it is also possible to set up automatic online payments of the minimum due to ensure money is received on time thereby avoiding a late fee. Then if you have extra money you can simply make another payment at your own discretion.
* Clean out closets, basement, attic, rooms, garage, sheds and workshop. Look at each item and determine if it is something you need, use or treasure? See if there are things you are no longer using or need and sell them via Garage Sales, Ebay, Craig's List, or Consignment shops. There is a saying 'one man's junk is another man's treasure'. So sell what you can.
* Maybe you are in a position where you can do other things to increase your income. Do some extra hours at work, take on a part time job, do some services for payment like tutoring, lawn or garden maintenance.
* Do a little research on grocery stores. It is surprising just how much you will save by spending a few less cents on every item.
* Visit second hand stores or used equipment stores and consignment shops when you are looking for certain items. It is quite possible to find good buys of new and next to new items in these stores at a fraction of their original cost. Don't become discouraged. We tend to live in a society where we have been led to believe we 'NEED' so many things but in stark reality most of these things are merely 'desires'. It is self gratification which does not keep us happy for very long. Or we are being influenced by others and trying to live at a standard that we cannot afford. We need to look at our lives honestly and determine what we want. Being in debt can cause a high level of stress which robs us physically and mentally. It robs our loved ones of precious time with us. How wonderful to live a less stressed life and be able to spend more quality time with our loved ones. When I speak to youth today about what they would like to have more of.... they often say their parent's ti me. Let's invest our time and efforts into our family - they are the best investment we have.
This is a beginning but you can get more help and advice from Scott Stephen. He probably knows more about debt consolidation and facing bankruptcy than just about anyone. You can find out more just Click Here! for an amazing plan that can lead you to becoming debt free.
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