Credit Card Debt Help

By Author: Ted Batron
Total Articles: 14
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There is a simple way to get out of debt. Make more, spend less or combine the two. Where people fall down is putting the strategy into practice and sticking with it until they reach their debt free goal.

You're probably thinking, great, tell me something I didn't already know. It takes a lot of discipline to achieve the goal of getting out of debt, and the truth is many people will give up long before they achieve their goals..

Most likely you didn't wake up in debt. It was accumulated over a long time span. It could be up to or more than two years that they spent money impulsively and didn't care to budget. Then all of a sudden their debts hit a critical point and they want to get out of debt fast.

If it took years to get into debt, why do you think it will take minutes to get out of debt. It just isnt possible without bankruptcy (a solution you definately want to avoid). Getting out of debt is about hammering away at the pile that has been created until it finally collapses.

And this is a sound analogy for your debt problems. There is light at the end of the tunnel, by sticking with the plan you ...
... will build momentum. That momentum keeps increasing. You notice at some point your feeling of frustration turns to excitement! Get to the point where you are not only paying the monthly interest on your debt but part of the principal that you owe. Paying more gets the debt down faster - something many people overlook.

How can you earn more? Thats a common question. You could get another job. You may already be working at your limit, so this may not be possible. It's your call. Don't risk your health. That would be counter productive.

Is there something you enjoy doing that can make a little extra income without placing additional stress on you? However, working a regular 9 to 5 job and then working on an oil field is probably not a effective idea for a second job (unless drilling for oil is a hobby).

What about looking at things you can sell in your home. Placing items on ebay or giving a garage sale is a easy way to raise a spot of hard cash fast. You may not make enought to pay everything offbut if you are getting rid of stuff you don't need then it's better than nothing.
Having said this, raising more money is probably far more difficult than getting ways to spend less of the money you already make.
Many people getting into debt or already in challenging debt problems don't have a budget. in the absense of a budget there isn't a limit on what is available to spend or what they spend their money on. So a budget is the first step.
Getting a budget together so you know what your spending limits are isn't that difficult. It's your monthly payroll check plus any other income creating sidelines that you have going. Don't forget to allow for taxes if your employer is not already. You might end up with another unplanned obligation at the end of year.

Now set up how much you spend. Be exacting about it. Even the littlest amounts should be shown. The purpose is to make needed and non needed items. needed items are necessary to survive, so your shelter and food are needed. Having said this, you need to determine whether you are living withing your income. Maybe you could get cheaper accommodation? Is your grocery budget too high? Wasted food is a common expense. This is an area where you may be able to spend less.

Non needed can be things like unchecked entertainment and shopping. Do you need a new set of clothes every week? Can you eat at home instead of dining out? All these things can be weighed. These are just a few thoughts for saving money, and getting out of debt.