When you have excessive debt from multiple sources, you may lose hope and simply give up. Don’t give in! There is light at the end of this dark tunnel. Listed below are a few tips to help you restore your financial security.
Dissolving Credit Card Debt
Poor money management or difficult financial times can create a situation where you max out your credit cards. Unfortunately, it’s much easier to accumulate debt than it is to remove it. However, there are several ways to get your debt under control. Companies such as Old Dominion Associates provide consolidation loans. This is one way to transfer your multiple payments to one, lower bill each month.
Going It Alone
If you don’t want to take on a loan or are unable to qualify, you can reduce the debt on your own. Contact each lender and let them know that you have every intention of paying and find out if they offer any sort of hardship plan where you can become current on your payments and pay less monthly for a short period. Often, lenders will work with you to avoid having to pay a collection agency.
Why You Need a Budget
When money’s tight, a budget can help you stay on track with your finances. It lets you see a clear view of your monthly net income and the total amount of expenses. When sticking to a budget you will make better decisions and eliminate wasteful spending. If you’re new to budgeting, you can find free printable forms online. Regardless of the number of bills and whether they are in the rears, a budget will allow you to work towards financial freedom.
Reeling in Unnecessary Spending
Wasting money when bills are behind is not good practice. You work hard and deserve nice things. However, now is not the time to throw away money on the wants. Take a stand and commit to reeling in wasteful spending. Eliminate things like buying lunch at the office and ordering take-out a few times weekly.
Saving Money
In order to avoid falling behind on your monthly obligations, you need cash in reserves for those unexpected expenses that require urgency. A home or auto repair, such as a broken pipe or a stalling engine, are items that you cannot put off. Start an emergency fund today to avoid delaying bills to pay for the expenses.
Spend Less
Essentials are necessary purchases that you cannot avoid. However, there are ways to lower costs. Food shopping can run a few hundred dollars weekly. Use coupons and look for advertised sales in the store’s weekly flyer. Go to the grocery store prepared. Have your list in hand and stick to it. To buy a large ticket item, shop around to make sure you get the lowest price.
Second Job
Sometimes your debt can intimidate you, especially if you have creditors threatening collection. Increasing your earnings will allow you to apply the extra money directly to the debt. Many local shops hire part-time workers. If you prefer to remain at home, search the net for online jobs.
End Credit Card Use
When strapped for cash, it’s easy to fall back into bad habits. Removing credit cards from your wallet will prevent this from happening. Instead, stick to your budget and use cash only. If there’s something you need or want, save up for it. You’ll feel a sense of accomplishment and you won’t have a bill coming in the mail.
Keeping up with Others
Everyone has to live the life in front of them. When going through tough financial times, cut out spending. Unfortunately, some people see others buy a new car or pictures of a friend’s vacation and suddenly they want the same. Now is not the time to get off track. Stay the course and you’ll have many wonderful opportunities in the future.
Drowning in excessive debt can leave you stressed and feeling helpless. Thankfully, you can turn your finances from bad to good in less time than you imagine.
