I bet that you're asking yourself
"HOW did I get myself INTO this MESS?" How did those tiny
little credit cards turn into big, scary monsters of debt where
no matter how much I pay off, the balance never goes down? How
did the dream house I bought lose so much value that it's just
not worth as much as what I paid?
It's not your fault that this is
happening to you, and you should not feel embarrassed or scared
to face the cold hard facts...
- YOU are in debt.
- You are not the only one
suffering.
- The bleeding has to stop
today.
- You are capable of turning
this debt around and start saving money for your amazing future.
I'm going to provide you with
some helpful ideas that will kick start you... just in time for
that New Years resolution!
Stop Spending
I know this sounds SO obvious
but it's true. It's not what you earn, it's what you keep that
matters. This week, look at one of your regular expenses. It
could be buying coffee everyday before work. It could be
spending cash on magazines and newspapers. Maybe it's the
amount of take-out you're ordering every week.
You need to stop those
purchases now, or at least drop them down to a 'special treat'
status of once a week or once a fortnight.
Work out what the savings are
by not purchasing these items and then pay that money directly
into your credit card. I tell you, it's a really nice feeling
watching that balance come down after you have worked hard to
achieve that goal.
Drive less
Gas is one of the luxuries in
our lives. Learn to live without it just a little bit. Start
by taking the bus or the train to work. Ride your bike daily,
even if it's just to buy milk and bread. Start carpooling...
it's great for the environment and a wonderful way to share the
cash savings with a work friend who may well be feeling the
pinch as much as you. Once again, work out what your weekly cash
savings are on gas, and then move that money on a weekly basis
into your credit card.
Sell things
I know that selling your things
can be difficult, but it's better to earn some cash from some of
your items now rather than leaving this until the bitter end
when you have run out of money and are forced to sell. eBay is a
great place sell these items. Begin by selecting a couple of
items that you have not used in more than a year and list them
on eBay. You will be amazed what other people will pay for
items that you don't use anymore.
You must commit to every penny
going into your credit card account. You will be so motivated
to sell more once you see the benefits of paying down the card!
Another way to save
If the government delivers even
the smallest tax cut to you, you must place those extra dollars
straight onto your debt. It was money that you did not have
yesterday anyway, so you won't miss it it goes straight your
debt reduction activities!
You'll find that your debts
will be paid off really quickly if you begin implementing these
ideas today. Once you get to a break even point, you will
experience the joy of putting those extra savings into your
savings account, where you can start building an investment nest
egg. But more on that in my next article....
I hope that these tips have
helped you out. It feels fantastic watching as you
reduce debt quickly and I highly recommend it to anyone.
Best of luck on your debt
busting and saving adventure!
