Get Out Of Debt — Start to Get Out of Debt
You are probably thinking get out of debt is easier said than done. Unfortunately for far too many people that is true. But, it doesn’t have to be that way.
Statistics flourish on the Internet but when you read one that says a whopping 75% of Americans carry some kind of debt, it is easy to believe. Even the Census Bureau tosses out debt statistics and they are only supposed to count heads.
Compounding the problem are the people filing bankruptcy. They use bankruptcy as their means to get out of debt yet some of those debts are not discharged in bankruptcy. That means in order to get out of debt those declaring bankruptcy still have to pay the non-dischargeable debt.
The causes of debt vary but it isn’t a stretch to say we overspend. Of course things like medical emergencies, while out of our control, don’t help especially if a person is un-insured or under-insured. No matter how hard a person was trying to get out of debt a medical emergency can add severe strains to the debt picture.
Student loans are in the news and on the lips of our Congress men and women. It seems this type of debt is in an unending upward spiral. Graduates often find themselves with a diploma but no job and a hefty student loan to repay.
By far, the biggest culprit remains credit cards if the statistics are correct. Credit card applications and enticements are still being mailed to consumers which mean there is an uptick in credit card availability. This can turn into a negative situation in a hurry if a person isn’t careful.
You get a new card and start spending and/or forget about the balance on your other two or three cards. Pretty soon all of your balances begin to snowball into the danger zone. Your debt level becomes a debt load.
To get out of debt you have to institute controls or you will lose control. The quickest way to gain control is to stop charging. If you cannot afford to buy an item for cash, either save for it or forego it. Paying by charging is money suicide if you are in that position.
In other words, you must control your spending. If you cannot resist pulling out the plastic, leave them at home before you walk out the door. If you don’t have them, you can’t use them. To get out of debt you must stay in control.
If you believe you are in over your head with your credit cards, you may be able to get help from your credit card issuer. Call them and explain your situation and ask if they will lower your interest rate at the very least. Also ask them if they will freeze the interest charges at the current amount while you are making payments. If they agree, do not add any new charges.
You’ve heard this piece of advice a thousand times but now implement it. Make a realistic budget and stick to it. Don’t fool yourself by not listing expenditures you know you make. Put everything on that spreadsheet so you have an honest and complete picture. Remember the idea is to get out of debt.
To get out of debt you have to pay your bills. That isn’t just some clap trap saying. That is reality. You may struggle at first but once you pay off one bill you can use that money to pay bill number two. Once you pay bill number two use those same dollars to pay bill number three.
That is how you get out of debt. To stay out of debt you must remain in control and decide how you will spend your money.
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