No one ever wants to get into debt. How can I reduce my debt? It comes from spending money you don’t have.
This could be for many reasons or you may have had your circumstances change such as losing your job, illness, divorce, partner dying.
My goal here is for you to take charge of your debt and get a handle on your spending. I want to share with you my tips that have personally helped me manage by debt.
1.Getting a Handle on How Much You Owe
This I found to be the hardest part as it brought me many emotions that I did not like. However, we need this step and its important.
Having all the debts in front of you will allow you to see the bigger picture and stay aware of your complete debt picture.
I strongly advise that you take action and do this step.
2.Consolidate Your Debts
Once you know how much you owe see if you can bring the debts together so that they become manageable.
Once way is to use your credit card and the zero interest card deal, you can pay the minimum allowed on this account and concentrate on paying the more expensive debt that you were unable to transfer.
Alternatively, you could apply for a personal loan to cover the whole lot. List all of your debt from lowest to highest.
3.Create a Budget
Create your money list which is a quick budget of your income and expenditure each month. Before you can dig your way out of debt, you need to know where you currently stand financially.
This process should take you no more than 30 minutes and make sure you have your bank statements to hand.
- List EVERYTHING you spend money on (i.e. bills, entertainment, grooming, the kids…everything)
- Write down how much each thing on your list costs you monthly. If unsure? Overestimate.
- Add up your monthly spending and subtract it from your monthly, take-home pay.
You should now have an idea of your budget and any net income.
4.Start To pay Debt Off
Start to contact each of your creditors and negotiate a minimum that you can start to pay them off with. Make sure to automate the payments. This will leave you with less work and tallying to do each month.
5.Change Your Mindset From Debt to Credit
Think about all the things that you love about your life. Keeping a positive mental attitude will make everything in your life easier to manage.
Being positive doesn’t mean painting on a fake smile and struggling on. Look for the good in life!!
To help you, I have been mentioned in a Book – How to Become a Money Magnet. This is a great start to feeling better about yourself.
6.How to Eliminate Your Debt 100%
INCREASE your income. I have proven methods that can increase your income and depending on the time and resources available to you, you should be able to find atleast one new income stream:
- Make Money Writing a Blog
- Sell anything on eBay
- Make money on Facebook
- Get paid to Listening to Music
- Make money on Twitter
- Make money Match Betting
- Make money Affiliate Marketing
- Earn money through YouTube
- Easy Forex Trading
7.Focus on your Progress
I have found that if I focus on the progress I have made rather than how much debt I have left, this really helps change my viewpoint.
Looking at your debt from a positive angle can give you a motivational boost. If you’ve been tracking your debt payoff, it shouldn’t be difficult to total up how much debt you’ve paid off so far.
Don’t worry if that number isn’t big, slow progress is better than no progress. But, if you can afford to make bigger payments, do it. That will help you pay off debt faster.
8.Don’t give up
One of the best ways to overcome discouragement is to fight through it. When you feel like giving up on debt repayment, just keep going.
If you give up now, then you’ve let your debt defeat you. Giving in to discouragement won’t help you feel better.
In fact, you’ll feel worse if your negative feelings influence you to pay only the minimum, to miss a payment, or to make a new credit card purchase.
Recommit yourself to your debt repayment plan and look forward to finally paying your debt in full.
It All Starts With You
Can I reduce my debt – YES YOU CAN!! You Can Beat Financial Stress and Debt, by following the steps above, you can do this.