Getting Your Debt Under Control: 6 Steps To a Brighter Financial Future

Debt is a problem that plagues so many people in the world, and it is something that is hard to overcome once it gets out of control. Nearly half of the American population carries some sort of credit balance from month to month, and as you would assume, carrying credit balances is what sets people up for debt situations that they can’t escape. If your debt is taking over your life, these are six steps to get you pointed in the right direction for the future.

Open an Extra Stream of Income for Debt Accounts

If you fall short each month with no money to spare for paying off your debt, it may be time to find an extra stream of income for doing so. Consider getting an extra part-time job or working online. It may not be the most ideal situation you’ve found yourself in, but there is a way out. The way out might not always be fun or convenient, but always worth it. Finding that second job might take time away from family or personal free time, but the stress and financial bondage you’re freeing yourself from will definitely make the time you do have with your family or yourself, that much more enjoyable.

Create a Budget

You should also work on creating a budget so that you don’t risk falling into deeper financial turmoil. Though creating a budget can take time and sticking to that budget once made, can take restraint and self-control, it’s more than worth it in the end. Budgets give you clarity as to what you’re bringing in and what’s going out on a monthly or annual basis. This gives you the foresight needed to know how much you can divvy out for the debt you’ve accumulated. Trust us, this will save you a lot of stress. This can also help you find extra money in your income that you can delegate towards your outstanding debt.

Get Rid of Most Credit Accounts

Face it; you don’t really need more than one credit account when it all boils down to it. So many of us are weak when it comes to self-restraint, why even have extra credit accounts around to tempt you? Get rid of all of your credit accounts except for one that can exist merely as an emergency funds account. If you can’t afford to pay on this remaining account, consider cutting off all credit accounts rather than just one.

Consider Debt Settlement

If you’re ready to settle on your debt but can’t fathom paying everything in full and need help, it wouldn’t hurt to get the help of law officials that specialize in helping people through the debt settlement process. For example, bankruptcy and debt consolidation/settlement experts like Paddon & Yorke Inc are fully equipped and qualified to help you through rough financial times like these. Consider making this an option of yours for overcoming debt.

Learn How to Start Eating at Home

Eating out is nearly three-four times as expensive as eating in, and the likelihood is high that it’s not helping out your credit situation. Delete your local pizza joint’s speed dial number from your phone and learn how to make wholesome, healthy, and affordable meals right at home. If you can’t allow yourself to be that extreme, limit yourself. Instead of pizza or take out every night, try making it something to look forward to or reward yourself by ordering out once a week. You’ll start to see extra change in your pocket that you didn’t have before.

Part with Things You Don’t Need

Lastly, get rid of things that you simply don’t need. Was that brand new gaming computer really worth the investment when you have credit lenders calling your phone at all hours of the day? Sell things you don’t need and put the extra money toward closing your debt accounts.

 

Tags: Debt settlement, Financial Planning

Category: Budget, Financial Planning