This article will present some good ideas on strategies for
eliminating debt and how to stay debt free.
The strategies I will be presenting in the article are all well
know but many of us just fail to implement them or don't
remember them.
Just remember that it's not totally your fault if you are
drowning in debt, some of the blame can be contributed to big
business rhetoric and government promotion of over spending to
keep the economy moving along.
Big business, like credit card companies, offers incentives that
are way to enticing to turn down plus they do a good job
catering to our emotions. But you can bet in the end you will be
fully responsible when you cannot payback your loans.
Not all debt is bad; in fact it is pretty normal to have a
mortgage and one car payment. This debt reduction strategy
really focuses on managing your spending habits on nonessential
items and eliminating high interest loans.
Listed below are steps one should take in order to achieve debt
free status.
While you have debt you must learn to stop buying items that are
considered luxuries. One of the biggest wastes of money is
eating out, by not eating out several times a week you can save
around $100 per week (family of 4). Packing your lunch can save
you even more. You must stop going to the movie theater, instead
rent a DVD or purchase a pay-per-view movie. That can save $40
right there alone (family of 4). You should try to stop wasting
fuel by planning out your trips into town by creating a to-do
list and stay in the same area for less travel. Another good way
to save money is to turn down the thermostat to 69 degrees in
the winter and 78 in the summer. I have personally save money by
stopping washing closes that are not dirty and cutting back on
using dry cleaners. Clean up your clutter and sell those items
by having a yard sale or placing them in the local and/or online
classifieds.
If you just sit down a make a list of all the spending you do
I'm sure you can add other things to cut out or back on.
Now here is the section that will give you the formula for
getting rid of that debt forever and if you learn to only live
by your means after you become debt free, you will be able to
start saving money instead of handing it over to the financial
institutions.
First, write down all of your bills, exclude those bills that
are considered essential, like utilities, fuel, mortgage,
insurances, and food you buy from a grocery store.
Select the loan with the highest interest rate; do not worry
about what the balance is. Apply all monies saved by cutting
back and the minimum payment amount toward that loan. Do this
until that bill is paid off. Next apply the money you were
putting toward the first loan along with your minimum payment to
the next highest interest loan. Keep doing this until all your
loans are paid off. After you achieve that goal start focusing
on your car payments and then mortgage.
If you commit to following this strategy it will not take long
at all before you are totally debt free. The hardest part of
this is staying focused and disciplined. Good luck!
About the author:
Dennis Watson has been helping others promote their products or
services for years through his Free Classifieds website
=>
http://www.zeoh.com/
