If your first priority is to get out of debt, even if it screws your credit, then go to one of those debt consodilation bla-bla-blas. They can help you, but beware-it will reduce your credit rating because it shows the big boys that you can't do it on your own..meaning you're a financial risk and money vendors can't trust you in the future.
If you have a significant amount of debt (credit card). Can make your minimum payments and still live, this is where I am at, and this is how I am doing it...
Do some homework on which companies are offering ZERO INTEREST for 18 months or however long. You suffer no penalties credit-wise for doing so. If you're really good at doing your homework, you'll find cards offering NO BALANCE TRANSFER FEES. That way, you can start paying your balances on the new card with no interest involved. I got caught up in paying my minimum payments, but realized that I was just paying interest that way. By eliminating as much interest as possible you chip away at the balance instead of just maintaining your debt status.
Other than methods of paying your bills...the biggest way to get out of debt, is DON'T SPEND MONEY YOU DON'T HAVE!!!!! I can't believe the number of people who spend a few dollars here a few dollars there on 1. stuff they don't need and 2. on credit cards they can barely pay.
Quickest fixes for me personally have been:
* Dine-out LESS. Ideally you eat at home every day for all meals and or bring your lunch/meals to work with you. Realistically, people can't do that and feel like they're really living and enjoying life. Limit your outside dining to once a week at a reasonable priced restaurant. Think about it. Dinner for two at about $15 a plate plus drinks, etc. Even just four times a week that's already $320 a month you're spending for NO REASON. And, please, please don't tell me you don't have time to cook, please. No disrespect here, just, please.
*STOP SMOKING. Besides the obvious health reasons involved. With cigs being almost $6 a pack, you're looking at an easy $175 a month being wasted. Don't even get me started on needing these...
*Recognize that soda is soda. Ever notice all those Bill Gates mofos are eating Wal-mart brand cereal and grocery store brand soda? Know why? Because it tastes the same, is made of the same stuff AND COSTS MUCH LESS. We pay $1 for a store-brand 6-pack of diet. The brand only sells 12-packs where we shop and goes for $5. At four 6-packs a week, don't look at it as a lousy $6 a week. Look at it as a savings of $312 a year ($208 for the store brand, $520 for the brand). If you can save hundreds just on soda, what else can you save on??? Us: bread, rice-cakes, oatmeal, jelly, peanut-butter, tuna, dishwasher fluid, shower-gel, crystal-light, chicken breast—all store brand. My guy was eating about 6lbs of chicken a week, drinking at least 6 gallons of store brand of crystal light, eating massive amounts of tuna and drinking soda like a madman. Between that and other typical groceries, we spent only $75-85 a week….for the both of us combined.
*Whoever drives the longest takes the car with the better gas mileage. He has an SUV. I have a sedan. He drives 30 miles in traffic into the city every day for his job. I drive 3 miles up the road for work. Guess what. I trust him. He takes the sedan. I take the SUV. End result, instead of paying $50 a week for both of our cars instead of almost $100 for him to drive the SUV back and forth. [DC] Gas prices are insane. Even take the metro if you can…
*Use this rule. If you would try to sell it at a yard sell two years from now, DO NOT BUY IT. We all have the tendency to buy things we don’t need. Stop. Paper towels should only be in your home if you have pets that mess on the floor. Otherwise, save your $2 a week and use a sponge or actual towel. Don’t buy things because they’re cool/cute, buy them because you need them. We don’t need NPC gear just because it’s on sale.
Don’t want to take up anymore of anyone’s time. I could go on. Key takeaways: Remember that debt is usually sustained because people never stop spending what they don’t have for things they don’t need. Pinch in the right places and you can be debt-decreased (soon to be free) and still socialize.
Thanks for reading.
LKG
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