You Can Get Out of Debt in 3-5 Years
The average American debt has increased by 85%. For each American household the average amount of credit card debt is $10,000. The good news is that there is a way to get rid of that debt in 3-5 years.
You need to take care of your basic needs first. You need to take care of food, a roof over your head and maybe even some transportation to get you to work. That doesn’t mean you can justify a new car or spending a lot of money on groceries or eating out. It’s time for you to cut back on stuff like this so you can pay more on your debt. Think about trading your new car in on a used one.
Buy a good cookbook and start cooking more food at home. Try to buy food that’s on sale. Plan your meals for two weeks and buy everything you need at one time. Make a list and just buy the stuff on your list.
You knew this was going to come up sooner or later, but you have to have some type of budget. You have to go through all your bills and compare that to your income and see how that comes out. Are you spending more than you are making? If so you have to cut back or make more money.
Once you have that figured out you have to put at least $20 in your budget to be spent on you. Spend it on something you really want. Make sure it’s just the set amount and it’s just once a month. This is mostly to keep you from feeling do deprived while your on a budget. I would get tired of being on a tight budget and go blow a hundred dollars. This is a much better alternative.
Before I forget stop using your credit cards! Stop spending money that you don’t have. Pay everything with cash, check or debit. I had to put mine away and quit carrying them with me.
Now when it comes to credit card debt you have to get out all your statements and look at your balances and also your interest rates. Depending on what you have you can do it one of 2 ways.
You can start paying off cards with the lowest balance or you can pay off credit cards with the highest interest rates. The most important thing is that you pay the minimum on all other cards and put the rest towards that one card. When you pay it off do the same with the next only add the minimum that you were paying on the previous card to the total on that one card.