Bad Credit Debt Consolidation: Ideas for Reducing Your debt
Posted on Oct 30 2006 | Tagged as: Bad Credit Debt Consolidation
Debt sneaks up on you. Eventually you’re up to your eyebrows in more debt than you can handle. When you’re ready to do something about it, here are the tips I learned from my own experience of digging myself out from under a huge debt.
1. Stop spending money. Find areas where you can reduce the amount going out. If you can’t control yourself with credit cards, get out a pair of scissors and cut them up. Credit cards can be helpful in our complex world. But, when you’re addicted to spending, then having a credit card is like a junky with cocaine.
2. Simplify your current lifestyle. We’re constantly bombarded with spending temptations that start seeming like necessities. They’re not. You can be very happy and contented (possibly even more so) with less. Take a look at any place in your life where you can simplify and save money. Make a list, set priorities and eliminate the frills.
3. Increase your overall income. Once you stop spending and start simplifying, look at your bottom line. Is there enough money coming in to make more than the necessary minimum payments on your credit card bills? If the answer is “no”, then you’ll need to find ways to bring in more money. This could be anything from selling things on ebay to getting another job. Be creative and willing to do whatever it takes.
4. Create a good payment plan. Design your program in a way that allows you to achieve a sense of accomplishment ASAP. For instance, you could pay off the credit card with the lowest balance first. At the same time, you would only make minimum payments on your other cards. Another possibility is to pay off the card that has the highest interest rate.
5. Give yourself Rewards. Make paying off the debt your primary focus and then find free or cheap ways to reward yourself for each little accomplishment. You’ll definitely deserve it. And patting yourself on the back can help motivate you to stick with your new debt-relief program.
6. Set a goal to stay debt free. There’s a lot of satisfaction in being out of the debt. Hold that picture and experience the great relief it will give you. A debt free life cuts way down on stress and can pave the way to true financial freedom.