Is credit card debt driving you crazy?
Spent too much this holiday season?
Well, you're definitely not alone. Credit card debt is a way of
life these days. Especially now, right after the holidays!
For many people, money gets REAL tight this time of year - we
need to pay for all the holiday gifts, get ready for tax
season...
Ahhhh!
What can you do if debt has taken over your life?
Make getting out of debt your New Year's Resolution for 2006!
Here are 5 simple tips for getting out of debt. Keeping a New
Year's Resolution is difficult. But if you follow these tips,
you'll be prepared for a prosperous 2006!
1) Write down your goal and make a plan for achieving it! The
first step to getting out of debt is by far the most important -
you need to:
* make a commitment to get out of debt * write it down * and
come up with a plan for reaching it!
Hey, you didn't get into debt overnight, and you won't get out
overnight, either. But if you want to get out of debt - if you
REALLY want to get out of debt, you need to have a plan. And you
need to stick with it.
2) Seriously consider using a debt reduction program If you have
the discipline to get out of debt on your own, without any help,
then good for you! But if you're like most people, a little help
will go a long way. Here are a few debt reduction programs to
consider:
* Credit counseling: If you have high interest rates on your
credit cards, working with a non-profit company will help you
lower those high rates, and combine your credit card bills into
one lower monthly payment - which means more of your money will
go towards reducing your debt!
* Debt consolidation loan: If you own a home, you can consider
taking out a home equity loan to pay off all your credit card
bills, lower you interest rates, and possibly deduct the
interest on your taxes (but check with your tax professional on
this one).
* Debt settlement: If nothing else is working, and your debt is
still overwhelming, then you should consider debt settlement.
This is a more aggressive approach, and is not right for
everyone, but if you're considering bankruptcy, this is a good
option. You can pay off all your credit card bills at a savings
of 40-60%, and get out of debt much quicker.
3) Start fixing your credit problems Many people think that
anything that goes on your credit report stays there for 7
years. Well, that's not always true. I got a bunch of negative
credit items off my credit report - all I did was get a copy of
my credit report, and ask the credit bureaus to remove the "bad
stuff". In just a few months, my credit was almost back
to
normal. There's nothing that says we must pay for our mistakes
forever (or even for 7 years)!
4) Cut down your monthly expenses If you overdid the spending in
2005, then it's time to cut out all the expenses you don't need,
and use the money you save to pay off your credit card bills.
Take a look at your checking and savings account statements,
your credit card statements, and your monthly bills. Then start
looking for things to cut. I know, I know, it's hard to live
without cable TV, cell phones, internet access, the morning
paper, weekend dinners and entertainment. BUT DO IT ANYWAY - at
least until you get your debt back under control!
5) Make some extra spending money Sometimes making more money is
the best answer! There are lots of ways to make money - selling
some of your valuables, getting a part-time job, starting your
own business. Despite some of the ads you read, there's no
really secret to making money - you just need to find something
you like to do, and work hard at it!
6) Think positive! OK, there were only supposed to be 5 tips,
but this one is the best one - no matter how hard life can get,
no matter how much debt you have, the one thing in life you can
control the most is how you think. So rather than focusing on
what you don't have, be thankful for all that you do have.
Nobody dies wishing they had made more money or worked longer.
But many people do regret all the fun and meaningful things THEY
DID NOT DO! So make some time to have fun, think positive, and
find little ways to enjoy life EVERY SINGLE DAY you are here on
plant Earth!
Wondering what makes me an expert on debt? Well, I lived through
it. I know what it feels like to struggle. And I know what it
feels like to overcome financial problems. There's nothing
special about me. I work at a college, so I don't make a heck of
a lot of money. I didn't win the lottery. And no rich relatives
left me a pile of money.
I just learned a few simple strategies - actually, I learned the
5 tips you just read about - and stuck with them until my life
changed for the better.
And you can, too - just follow the tips above, believe in
yourself, and DON'T LET ANYONE OR ANYTHING STOP YOU FROM
REACHING YOUR GOALS in life!
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