How to Put Your Debt Behind You
It seems like everyone has thousands of dollars of debt they are trying to pay off. Whether it is student loans, car loans or credit cards, debt makes life stressful. If you want to achieve financial freedom you must pay off your debt. Even with the economy getting weaker you can still improve your personal financial situation.
When you are struggling just to make minimum monthly payments, paying off your debt entirely seems very far out of reach. Don’t get discouraged though, anything is possible if you are willing to make the sacrifices it will take. The first step to a debt free life is to make a list of everything you owe; every credit card, every car loan, your mortgage, student loans, everything. Make the list as detailed as possible. Include the balance, monthly payments, due dates, and interest rates.
Now for the truly hard part. Sell your stuff. It sound crazy but you are in debt because you bought a bunch of stuff you could not afford. Furniture, TVs, stereos, and even cloths can all be sold. Take the money your make off of your stuff and pay off the debt you created with it. Have a garage sale or sell your stuff on ebay, whatever will make you the most money.
Next you have to take a hard look at your car and your house. Can you afford them? If you bought a car that was really too expensive; replace it with a more affordable car that you can pay off in a short time. If your mortgage is too high for your income, you have to move. You might want to consider renting a small place until you get back on your feet.
With your debt paid down as much as possible you need to develop an organized method to pay off the rest of your credit cards. Organize your cards by interest rate. Make extra payments on the card with the highest interest rate until it is paid off. Then move on to the next card. You may have to get a second job in order to be able to pay extra. It won’t last forever though, just until you are debt free.
You must improve your financial situation if you want to improve your life. You will only fall farther behind the longer you wait. Go to www.personalfinanceissues.com to get help with your budget. They can provide the tools you need but only you can take the steps to improve your life.