If You’re Trapped by Debt – Write a Debt-free Plan
Presented by Honey B Wackx
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The economy is bad and unfortunately you may be trapped in it loaded with debt. Does it seem like debt is all around you? You don’t have to remain trapped by your debt problems. You just cannot give in to it. Here are some ways to create a plan to fight back.
Almost everybody has debt. As soon as you buy a car or a house you inherit the debt of the loan. Over time, you pay off those loans until you own your property. But, there are times when we get into more debt than we can manage. Credit cards are an easy way to pay for items when cash is hard to come by. But, eventually you will have to come up with the cash.
Write a debt-free plan. This plan is more than a budget (which most of us hate to think about, let alone follow) but a way of making lifestyle changes that will eventually lead to debt freedom. It is not just for you but also your family. Children who learn how to manage debt and finances at an early age will be more likely to avoid debt issues as they grow older.
Here are a few highlights of a debt-free plan:
* Know your bills – It is important to know what you are working with. How much money do you have to pay out in a month? There are bills that we can’t do without paying unless you want to be sitting in the dark with an empty stomach. These are your priority.
* Eat to live but don’t splurge – Grocery shopping takes time but also money. It is ideal to make one shopping trip do for the month but if you think about it, you are probably at the grocery store once a week or more. Create a list and stick to it. If the entire family gives their input about what you need around the house it is easier to make one big trip. If you can, buy daily use items in bulk (milk, eggs, bread). You can freeze bread and milk for later use. Be sure to shop at the large supermarkets in your area instead of local neighborhood mom and pop stores because usually you get lower prices.
* Decide how to handle other debt – If you are being haunted by a credit card payment or several credit card payments; take a look at the interest rate. This is more important than the balance. Credit cards with high interest rates increase your balance faster, especially if you miss a payment. Tackle these first with any extra money to get them out of your hair as quickly as you can. Then, move on to the next one.
Note that in some cases you can find special balance transfer offers if you sign up with another credit card company or bank. Just be aware that now some card companies put fees and restrictions for doing that. Check first before making such a move.
* Create an emergency savings account – We all need money for incidentals. An emergency fund gives you that cushion you need. Divide the money you save on bills between credit cards and savings. Usually working on two fronts is counter-productive but in this case, it’s a win-win situation.
You probably are feeling confined by debt. You can, however, break out of the debt cycle and become debt free. In addition to the above steps you might consider a part-time job if any is available. That could help hasten the time until you are debt-free.
Honey B is on track with her learning about gemstone mystic qualities. She is becoming an expert in Ayurveda.