Are you going crazy because of credit card debt? Spend too much during the holidays?
Well, you're not the only one. These days, everyone has credit card debt. Even more so right now, just after the holidays!
This time of year, money is really tight for a lot of people. We have to pay for all the holiday gifts, get ready for tax season, and so on.
Ahhhh!
What can you do if you're drowning in debt?
Make it your New Year's goal for 2006 to get out of debt.
Here are 5 simple ...
Are you going crazy because of credit card debt? Spend too much during the holidays?
Well, you're not the only one. These days, everyone has credit card debt. Even more so right now, just after the holidays!
This time of year, money is really tight for a lot of people. We have to pay for all the holiday gifts, get ready for tax season, and so on.
Ahhhh!
What can you do if you're drowning in debt?
Make it your New Year's goal for 2006 to get out of debt.
Here are 5 easy things you can do to get out of debt. It's hard to keep a New Year's resolution. But if you follow these tips, 2006 will be a good year for you!
- Write your goal down and make a plan for how to reach it!
The most important step to getting out of debt is the first one, which is to:
- Make a note of it
- And make a plan for how to get there!
- Commit to getting out of debt
Hey, you didn't get into debt overnight, and it won't take you just as long to get out of it. But if you want to get out of debt, if you REALLY want to get out of debt, you need a plan. And you need to keep going.
- Give a debt reduction programme serious thought.
Good for you if you can get out of debt on your own, without anyone else's help. But if you are like most people, a little help will go a long way. Here are a few programmes that can help you get out of debt:
Credit counselling: If you have high interest rates on your credit cards, working with a non-profit company can help you lower those rates and combine your credit card bills into one lower monthly payment. This means that more of your money will go toward paying down your debt.
- Debt consolidation loan: If you own a home, you might want to take out a home equity loan to pay off all your credit card bills, lower your interest rates, and maybe even deduct the interest on your taxes (but check with your tax professional on this one).
Debt settlement: If nothing else works and your debt is still too much, you might want to think about debt settlement. This is a more aggressive strategy that might not work for everyone, but if you're thinking about filing for bankruptcy, it's a good choice. You can save 40–60% on all of your credit card bills and get out of debt much faster if you pay them off all at once.
- Start taking care of your credit issues
Many people believe that anything that goes on your credit report stays there for 7 years. But that isn't always the case. I got a bunch of bad things off my credit report by getting a copy of it and asking the credit bureaus to take out the "bad stuff." My credit was almost back to normal in just a few months. There's nothing that says we have to pay for our mistakes forever (or even for 7 years)!
- Lower your monthly bills
If you spent too much in 2005, now is the time to stop spending on things you don't need and pay off your credit card bills with the money you save. Look at the statements for your checking and savings accounts, credit cards, and monthly bills. Then look for things you can cut. I know it's hard to live without cable TV, cell phones, internet access, the morning paper, weekend dinners, and entertainment. BUT DO IT ANYWAY, at least until you get back in control of your debt.
- Make some extra spending money
Sometimes the best answer is to make more money. You can sell some of your valuables, get a part-time job, or start your own business, among other things. There is no real secret to making money, despite what some ads say. You just need to find something you enjoy doing and work hard at it.
- Think good thoughts!
Okay, there were only supposed to be 5 tips, but this is the best one. No matter how hard life gets or how much debt you have, the one thing you have the most control over is how you think. So instead of thinking about what you don't have, be grateful for what you do. No one dies wishing they had worked longer or made more money. But many people do regret not doing all the fun and important things they could have. So find time to have fun, think positively, and find little ways to enjoy life EVERY SINGLE DAY you are here on plant Earth.
Want to know why I'm an expert on debt? I was there, so I know. I know what it's like to be in a tough spot. I also know what it's like to deal with money problems. I'm not special in any way. I work at a college, so I don't get paid very much. The lottery didn't come to me. And none of my wealthy relatives left me a lot of cash.
I just learned a few simple strategies. In fact, I learned the five tips you just read and stuck with them until my life got better.
And you can too if you follow the tips above, believe in yourself, and DON'T LET ANYONE OR ANYTHING STOP YOU FROM REACHING YOUR LIFE GOALS!
