A How To get out of debt?

A How to get out of debt

Five steps to being debt free.

1 Cut back on your spending.

2 Explore avenues of extra income.

3 Restructure your debts

4 Restructure your assets

5 Discipline your self

To cut back on spending:

• Sit down draw up a list of everything you owe.
• List them all into three categories:

• 1. Fixed payments; eg: rent (mortgage).
  2. Necessities but variable, groceries, fuel, electricity etc.
  3. Other variables entertaining dining out, mobile phone, clothes, transport etc.

Scrutinize all items in three first, cut down or cut out as many as possible. Then move to your second list, explore ways of saving; groceries are you using coupons? Are you using energy saving devices? Get the whole family involved in coming up with ways to save or cut down.

Draw up a budget AND STICK TO IT.

Extra income.

•· Start where you work, salary increase, overtime.

•· Remote work on line, nearly all companies asks how many hours you can put in.

•· Weekend trading, flea markets if you enjoy doing craft work, a great opportunity to get even more satisfaction out of your hobby. (I spent more money celebrating the first dolls cot I made and sold, than what I got from the sale. Don't do what do, do what I suggest.)

•· Garage sales, if you haven't used it in the last six months sell it.

Restructure your debts.

•· First try negotiating repayment time frames. Most companies when contacted will be reasonable. Work out what you owe everybody percentage wise, use that figure as your proposal. Get rid of the smaller ones first. After paying off the smaller ones, increase your payments to the bigger ones.

•· Secondly try securing a loan to pay off all your debts. Make one payment a month to one place. Do not create any new debt whilst this is in progress.

WORK OUT A BUDGET AND STICK TO IT.

Restructure your assets.

•· If you own your own home, it might be an idea to consider moving to cheaper house.

•· Do you have more than one car, is the second one fully optimized.

• Borrow from your insurance policy. Use this as a last resort, to pay off outstanding loans.

Millions of people all over the world are affected by debt. A large number of companies specialize in debt restructuring and consolidation. This is also a valid option; it offers you the opportunity to start fresh, empowered with more skills on money management and finance.

There are excellent books for further reading, among those I would highly recommend are those by Suze Orman, as well as " How to Get Out of Debt, Stay Out of Debt, and live Prosperously" by Jerry Mundis, " Zero Debt" by Lynnette Khalfani. All are available through Amazon.

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