Trying To Manage Your Debt
You're near rock bottom. Your credit cards are maxed out and you're now at the point where you do not have enough money to pay beyond the minimum payments. You can't buy things that you'd really like or need now because of the mess you've made with your spending. If you're trying to manage your debt, the first thing you have to do is come up with a budget. You have to get a clear idea of what your money coming in is and what you need to spend it on. To pay down your debt, there are a couple of things you can do: reduce what you owe, make more money, and stretch your current salary so you can pay off what you owe sooner. In terms of reducing what you owe you could try the following tips:
* Transfer all of your credit card balances onto new 0% balance transfer cards. Depending on what you owe, you could save money by not having to pay any interest for the next six to 15 months. Make sure you close or "freeze" any of your old credit cards so that you don't charge them back up. Apply the money that you would have spent on interest on extra payments.
* Cut down or stop any extra bills that you automatically pay each month. I'm talking the second cable box and the HBO or sports extras. Stop all automatically charging memberships you may have on the Internet. Downsize your telephone services.
In terms of making more money you could try the following tips:
* Get a new job with a better salary.
* Take a part time job at nights and weekends where you could earn a little bit more money.
* Try to work from home, free-lancing your services over the Internet.
If you don't have the skills necessary to try any of the above tips, work on them. Check out a book at the library to find more information. Consider volunteering somewhere so you can learn on the job.
In terms of stretching your current salary so you have more money to pay your bills, consider the following tips:
* Turn your thermostat up or down (depending on whether it's hot or cold outside). If it's winter, put on a pair of socks and a sweater around the house. Buy a timer for your thermostat so that it only heats/cools when you expect to be home or awake around the house.
* Do it yourself. The yard, your bathroom, your kitchen. Whatever you've been paying other services to take care for you, stop now. When you're in debt, you don't have money for nice services like these. Don't feel bad; you've simply been living beyond your means.
* Buy your groceries with cash. Literally. Not your debit card but with $20s in your wallet or purse. Nothing like a drop dead limit on your spending to help you decide what groceries you'd really want. This will help cut down unnecessary purchases and maybe even save you a couple of inches around your waistline.
* Reduce your transportation costs. Improve your mileage by making sure your car is well tuned. Vanpool or carpool back and forth to work. The time you trade off for coordinating everybody together will be made up with the time you'll save driving on the HOV lane.
* Bargain hunt online. You can buy used books, over stock items, seasonal sale items all online at a fraction of their originally marked prices. Set a limit on your credit card purchases; if you can't do that, consider getting a prepaid credit card that you can use online but has a finite limited amount of cash you can charge.
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