How Do I Get Out of Debt?
In spite of the fact that debt is problem for a lot of people in Canada today, getting out of debt is a relatively simple process. Simple does not always mean easy, but if you are willing to be responsible and focused it is possible to completely eliminate your debt.
Try out these steps to help you out of debt.
The first step in your journey to become debt free is to become aware of all of your personal finances. This means collecting all of your bills, credit card and bank statements. Make sure you know exactly what money is coming and going in you bank and household. In some cases, an incomplete knowledge of personal finances can be one of the factors that led to debt in the first place. Knowing your finances will take the ambiguity out of spending. You will know whether or not you can afford all potential purchases.
Create a Spending Log
Spending logs can be very useful, especially when overspending is a problem. A spending log is exactly what it sounds like, a complete list of all the places your money goes and how much. This will allow you to see, empirically, exactly how you spend your money. It will also show you the places you can stand to save some money.
Make a Budget
The next step is to make a budget. This is a brilliant little tool that will act as a roadmap in your financial life. To make one, you need all of the information you would have collected in the first step. You want to look at your month to month costs versus your income. Make sure you can pay all of your monthly bills and payments at the end of each month. If you can’t you should make some adjustment so that you can. For instance, shop for better services, like television or web, if the ones you have are too expensive. Budgets are a great help and they are relatively easy to make.
Keep Those Credit Cards in Line
If credit card debt is your problem then you should limit yourself to one. Cut the rest up immediately. As for the remaining one, put it somewhere it can’t tempt you. Leave it at home when you are going out. Some even suggest that you literally freeze your card to stop you from making impulse purchases. Just make sure you can’t still read the numbers.
If you are in some serious debt and you can’t see a way to dig yourself out, getting help from a professional source may be an option. If this is the route you would like to take I suggest finding a credit counseling site like Consolidated Credit. They might be able to help you make your debt more manageable with advice and planning.
Try out some of these steps to see if they help you begin to eliminate your debt. The most important thing to stay informed and don’t allow yourself to be discouraged. You can dig yourself out if you stay vigilant.