I'm really serious.
Excess debt can harm you physically, financially, and mentally.
- Physically, you may experience headaches, fatigue and insomnia.
- Mentally, you will be constantly strained as you worry about the constant calls from creditors and the pressure of meeting your next monthly bill payment.
Will you have enough money? Will you ever have enough money?
- Financially, your credit score could be so damaged that you would be denied credit, or if not, be asked to pay incredibly high interest rates that only serves to make you even poorer.
You need to get serious if you want to be healthy, happy and have peace of mind.
So are you really serious about getting out of debt? If you are, then you must start the process off with one important step.
You must get clear on where you are now.
How much do you really owe? Who do you owe it to? What is the rate of interest for each debt? What are the minimum payments due? When are those payments due? Go out, get that information and consolidate it into a spreadsheet.
Now that you have documented all your debts, this will give you a good idea of what your total monthly minimum payments are.
Now you can start with our first top tip: 1) Establish a Budget: Knowing what you spend on a monthly basis is critical to getting control of your debt.
Separate these into essentials (like housing, food, heat, etc.
) and non-essentials (like entertainment (books, movies, games, etc.
), going out, etc).
Then ask yourself, Are there any expenditures in these areas that can be reduced? - be honest with yourself.
For example, a family I knew were spending over $500 per month on food.
When they did this analysis, they found that they were overspending by about $200 buying unnecessary organic products (like bananas) and other items that they just kept in their pantry "just in case".