Getting out of debt and staying out of debt is not easy. Chances are, you're reading this article because you've already amassed a fair amount of debt and are thinking it will be impossible to ever get out from under it all. Learn how to stop incurring new debt and change your life forever1. Stop increasing your debt. If you have any credit cards that are maxed out, cut them in half. If you have more than one remaining credit card, cut them up. When you finish, you should have no more than one credit card. Also cut up any "convenience" cards, such as gas cards, department store cards, etc. You will use your one credit card only to buy "emergency things", and things that you know you will be able to pay off in a short amount of time until you can get your spending fully under control.
2. Record your spending. The idea of writing down what you spend is a concept most people find annoying at best and useless at worst. However, this is actually your key to getting out of debt. You're in debt because you spent money you didn't have. If you're like many people, your debt didn't come from one single huge purchase; it was trickles of spending amassed over time. Avoiding more debt starts with knowing what you are spending your money on. Each day for one month (at least), write down every penny you spend, no matter how small. Read more.....
I just love the tips you have given in the article. People need to be cautious and shouldn't make costly mistakes if they really want to get out of debt. Spend money only when there is no other choice. In the current economic scenario, every one should have an emergency fund. This is because nobody knows when they will need it.
ReplyDeleteThe debt issue is a huge problem in our culture. I know many people who have maxed out credit card after credit card. It seems like people have no control over themselves and they keep spending and spending. Ultimately in life the only person you have control over is yourself. You need to exercise control or else your life is going to fall apart.
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