America is a debtor nation. Our
national debt is soaring, we owe
money to foreign governments and
individuals, and personal debt
remains at an all time high. If
we keep on this course, our
nation will be bankrupt our
personal lives in ruins. The
federal government isn’t likely
to get out of debt any time
soon, but that doesn’t mean you
can’t or shouldn’t. Let’s take a
look at some ways you can reduce
your debt burden on the way
toward becoming truly debt free.
Start A Budget
One of the first ways to get
a handle on debt is to start a
budget. No, it doesn’t have to
be hard and fast at the outset.
Instead, track your income and
expenses for several months to
see just what your spending
habits really are. Chances are
that you can save a little bit
of money here and there right
off the bat. Eat out less, opt
for a cheaper cell phone plan,
raise insurance deductibles, use
coupons, etc.
Get Rid of It
Much of what we acquire is
purchased by impulse. That
plasma television, stereo
system, CD player, and more: do
you really need it? If not and
if it still can be returned,
bring it back to the store for a
full credit. At the very least
make a promise to yourself that
you won’t be buying anything by
impulse in the future.
Attack Those Credit Cards
If you aren’t controlling
your credit spending, then your
spending is controlling you.
Switch from high interest credit
cards to low interest credit
cards, pay off your cards, and
start paying cash for
everything. If you really need
something, you’ll find a way to
get it without resorting to
plastic. Examine the difference
between wants and needs.
Refinance
Your mortgage can be a big
drain especially if your
mortgage rate is adjustable and
continuing to climb. Lock in a
fixed, lower rate. Consider
selling your home if you are
living beyond your means!
Homeownership shouldn’t mean
that your house owns you. Scale
back and scale down if it would
help you control your finances.
Debt free living is a
journey, not a destination. Once
you have mastered your debt, you
must continue to control your
expenses. Lose control and
someone else takes control: your
bank, your mortgage company,
your credit card provider, etc.
