But there is a way to control your debt and finally become debtfree, it is not as hard as it seems, infact it might sound silly, but the only reason why you are in debt is because of one silly rule that we tend to forget, which is,
We spend more than we earn
To control this debt monster you have to start making small changes to your household expenses, and you will soon notice a difference. .
To get your self out of your mountain of debt, 3 things have to be in place.
have a plan - an expense and a payment plan.
start paying of your debt
start saving plan, (emergency fund)
One of the most important steps, as mentioned above, is that you need to find a way of increasing your income in multiple ways, in a series of steps designed to get your finances in better shape and to pay off debt faster.
Living within your budget should be the first thing you do, It is vitally important. But it’s only a part of the equation — spending less only gets you part of the way. Earning more gets you the rest of the way.
How can you increase your income? Sure, anyone can create a blog, write an ebook, freelance, write a print book. But it doesn’t always work out for everyone.
The key is to find something you’re passionate about, and pursue that with all of your heart. That might mean educating yourself, and learning new skills. That might mean finding mentors, and starting at the bottom. But when you’re passionate about something, you’re more motivated to learn and to succeed.
Sart implementing this 2 step approach now to start decreasing your debt
Step 1 : Resolve to spend less than you make.
Work it out.
The first step is admitting you have a problem. Set aside just 30-60 minutes a week to deal with your finances — make it a set day and time, and don’t let yourself miss this appointment.
Understanding how much debt you’ve accumulated is the first step toward reducing it. It can be difficult to confront that total, but it’s critical that you do. so you know exactly how much you owe to the world. Put them in a spreadsheet, with monthly payments, interest amounts, balances, and a running grand total of all your balances. Update it monthly as you pay off debt, and watch the overall amount go down slowly. It’s very motivational.
Create Your Plan.
Put the plan for reaching your goal on paper. This will help you set targets for monthly expenses such as utilities, groceries, medical costs, household needs, and transportation. Set realistic targets and then try to spend even less. Make hard decisions about how to squeeze more of what you earn from your budget to pay off your debt. Don’t forget to budget for the unexpected, such as repair for the house, car or emergency medical treatment.
Step 2. Remove credit Temptation
Cut up store cards.
Store cards charge by far the highest rates for credit, so if you're finding it hard to manage these debts throw away your cards now to avoid temptation.
You'll pay well over the odds for most store cards - it's better to pay cash if you can. For those items you can't pay cash for, shop around for the best deals - the market is competitive, so there are some excellent interest free credit offers around. It is also worth taking a look on the internet as many products are offered there more cheaply.
Cancel the credit card.
Credit cards are extremely tempting, and with the high interest, they can be downright dangerous. It is possible to use them wisely and even profit from using them … however, most people don’t use them that way, and for people , it’s better to just cancel the card.
Cancel non-essential expenses.
Eliminate everything you do not need: cable TV, eating out, going to the movies, alcohol, cigarettes, buying new clothes, etc. learn what it is like to live frugally.
Create The spending plan.
Use the term “spending plan”, because it conjures images of creating a plan to achieve a goal, taking action, and doing something about your problems. Nevertheless, both concepts are essential the same: figure out how much you make, and consciously decide how you want to spend it this month. Actually budget out each paycheck. You have to decide where your money is going to go before you actually spend it.
Track Your Spending—Using the plan you’ve developed, track your spending carefully so you can look for additional ways to save. The more money you can apply to your debt each month, the sooner you will learn How to be Debt Free
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