15 Ways To Get Out Of Debt And Save Money Quickly

Get Out Of Debt And Save Money now by following the ways outlined below. According to Meir Statman, a behavioral economist in a recent statement “getting out of debt is the financial equivalent of trying to quit smoking.” It is important to understand that just like every other bad habit, good intentions alone will not be enough.

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To ensure success, you need to break your underlying patterns of behavior. Have you ever imagined what you have to go through each time you find yourself in debt or each time you allow your debts to pile up to several huge sums?

This could be disastrous on your part and most times also alarming. According to research, being in debt does not only stress an individual physically but also mentally and emotionally.

Although every debtor is usually not in the right frame of mind and are being stressed in every area of their lives, their age other consequences that arise out of being in debt which is why it is paramount for you to know exactly the 15 Ways To Get Out Of Debt And Save Money as outlined below

  1. Budgeting: To get out of debt fast and save money.

If you want to learn how to get out of debt and save money, you must cultivate the habit of budgeting. This should be the first thing to do, drawing up your budget and knowing exactly what is needed, necessary and what is not too important in your list.

You can do this by gathering all your bank and credit card statements, sitting down and making a budget based on what is available. Organize what you are paying out monthly into categories and handle them as listed. Dave Ramsey, the author of the New York bestselling book, The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness,” said, “A budget is telling your money where to go instead of wondering where it went.”

  1. Reduce Your Interest Rates: To get out of debt and save money

Another way to get out of debt and save money is to reduce how much you pay on interest. To do this, you can start by calling your current credit card companies to explain to them that you intend to transfer your balance to another issue except they reduce their rate.

This is because all credit card companies run promotional programs with low-interest rates that help individuals. They will be more than willing to put you on one of those programs that will help reduce your debt all you need to do is ask.

  1. Pay off debts with the highest interest rate first: To get out of debt and save money

Every debtor is a prisoner of the lender. This is because you are always distressed each time you come across your lender or each time you know you have some cash to pay to someone.

As the case may be, there is a sure way of making all this go away and this start by paying off the debt starting from the ones with highest interest rate. You can list them in other to figure out which among them have the highest interest rates.

If this is done right, you will realize that at the end of the day, you will be left with little or no debt to pay. Why it is important to pay off debt with high-interest rate is because they consume the larger part of your income leaving you with no saving if not taking care of.

  1. Pay more than the minimum balance required: To get out of debt fast and save money  

To ensure your debt is paid off, you need to pay more than your minimum balance on your credit card statements each month. This is because “Paying the minimum – usually 2 to 3 percent of the outstanding balance – only prolongs a debt payoff strategy,” according to Prabhakar.

Whether it is a credit card debt, personal loans, or student loans, the best way to pay them off sooner and have some savings is to make more than the minimum monthly payment budget or making the payment on weekly basis.

Doing this will not only help you save on interest throughout the life of your loan, but it will also speed up the payoff process. “Strengthen your commitment to pay everything off by making weekly, instead of monthly, payments.” Or if your minimum payment is $100, try doubling it and paying off $200 or more.

   5.Using the debt snowball method: To get out of debt and save money

This method works like magic, if you really want to pay off all your debts, this means paying more than the minimum monthly budgets on your credit cards and other debts. Using the snowball method will sure speed things up, build momentum and help you realize some savings.

How it works

The steps involve listing all of the debts you owe from smallest to largest. Use your excess funds at the smallest balance, while making the minimum payments on all your larger loans. Once the smallest balance is paid off, start putting that extra money toward the next smallest debt until you pay that one off, and so on.

  1. Close any account that is no longer needed: To get out of debt and save money

If you have any unused credit card from lenders with whom you’ve had a long relationship, it will boost your credit score. In the other hand, having too many will harm it.

According to research, 3 credit cards is what works best and try to never spend more than 50% of the available credit on any of the cards.

Mary Hunt, the award-winning and bestselling author of more than 23 books, author ofDebt-Proof Living: How to Get Out of Debt & Stay That Way” said,”Contrary to the financial pressure and stress we might feel from time to time, generally the problem is not that we don’t have enough money. The problem is that we don’t know how to manage what we do have.”

This will keep your score at its highest. Also, you should consider closing all your store cards, if you need to make a purchase then use your credit card and pay it off at the end of the month.

7. Get a cool off and leave those cards at home: To get out of debt and save money

Most times we spend unnecessarily because we are always with our credit cards. If you are such person and you want to know how you can get out of debt and save money, then I will suggest you leave those cards at home sometimes to avoid excess spending. While leaving them at home, you should also ensure you don’t keep them where people can easily see them.

Jerrold Mundis in his book titled “How to Get Out of Debt, Stay Out of Debt, and Live Prosperously“: Based on the Proven Principles and Techniques of Debtors Anonymous” extensively discussed most of this issues and it is best you get some ideas from him also.

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 8. Sell off unwanted items: To get out of debt fast and save money

This is another good method for you to pay off your debts and also make some savings. There are lots of items we keep in our houses that are not needed by us as an individual but lots of people want that item but are looking for it at a cheaper rate.

So it is advised to use this opportunity to sell those items off and make some cash which will also help you pay off those debts.

Search through your home, look for items you can sell off. Karimi said “Do some research to make sure you list these items at a fair and reasonable price,” “Take quality photos and write an attention-grabbing headline and description to sell the item as quickly as possible.” Any profits from sales should go toward your debt.

   9.  Change your habits: To get out of debt and save money

Every debt owed comes as a result of habit. This can be the habit of excess spending either on things required or on unnecessary things. According to Hamm “Your daily habits and routines are the reason you got into this mess.”

You can spend some time thinking about how you spend money each day, week and month and see how you can cut down on excesses.

  1. Try to Understand Your Loans and Make Plans: To get out of debt and save money

If you are going to get out debt and save money, you have to understand your loan pattern and also create an accurate repayment method that will help you get rid of it as fast as possible. You can do this by using a repayment calculator.

Plug the information about your loan into a repayment calculator or use your loan servicer’s online account tools. Learn how much you need to pay per month in order to pay off your loan within a specific amount of time.

   11.   Nicely ask for loan repayment money for gifts: To get out of debt  and save money

This will go a long way in helping you also in your debt payment. To do this you can nicely tell your friends and family that instead of giving you the traditional birthday, holiday, and graduation gifts, you’d rather receive funds that will help subsidize debts and go into paying down loans.

  1. Give yourself some credit and reward yourself: To get out of debt and save money

According to Bakke “The only way to completely pay off your credit card debt is to keep at it and to do that, you must keep yourself motivated.”

Do not see yourself as being in punishment while paying off your debts because that won’t help you pay it off any faster. So at some point give yourself some rewards and stay motivated. Just make sure to reward yourself within reason.

Beverly Harzog, author of; The Debt Escape Plan: How to Free Yourself From Credit Card Balances, Boost Your Credit Score, and Live Debt-Free, said ” There is not correct way to pay off debt, contrary to what you hear in the media. The objective here is to put yourself in the best position possible for success”.

13.   Use your work bonuses to pay off debt: To get out of debt and save money

Paying off debt is not that easy, this is why you have to make great effort to get out of it. At this point, you can also try putting your work bonuses to help with the payment.

If you receive a job bonus around the holidays or during the year, try to allocate part of it towards your debt payoff plan. It’s more important to fix your financial situation than own the latest car.

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14.    Get part-time job: To get out of debt and save money

During the holiday period or other seasons, there are lots of part-time jobs that springs up. You can scout for and get some part time jobs which can help in minimizing expenses on your major income.

If you’re willing and able, you could pick up one of these part-time jobs and earn some extra cash to use toward your debts. Whether you want to pay off debt or save money, this is a good approach that can help you achieve that.

15.   Always spend less than you plan to: To get out of debt and save money

Most times, we make wishes and plans bigger than our pay cheques, the popular saying, “You can have almost anything you want; you just can’t afford everything you want,” is true. Due to the fact that people want what they can’t get, they have been forced to spend more than they earn and this leaves them in huge debt.

Suze Orman, New York bestselling author of,”The Money Book for the Young, Fabulous & Broke“. said, “Remember to remember your power – everything you’ve learned with these steps to financial freedom – and put it all into practice every day, because, in the grand scheme of life, you’ll never really know how things are meant to turn out until they turn out.” Suze Orman, The 9 Steps to Financial Freedom: Practical and Spiritual Steps So You Can Stop Worrying.

If you want something, don’t buy it unless you have the money. More also, if you can be satisfied with less than you would ideally want, even temporarily, you can use the money you save to pay down your debt.

By the time your debt is paid off, you’ll probably have adjusted to your new priorities, and you can use the money that you are saving to put towards other financial priorities.

It’s my hope that my article 15 Ways To Get Out Of Debt And Save Money has helped you in your quest to get out of debt and saving money.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Consolidation Is A Way To Debt Freedom

ID-10052748Many of us have noticed the way in which debt can pile up.

Some people who are improperly informed about their finances tend to spend more than their actual capacity.

This can become a problem with credit cards; since they let you spend away up to your limit.

A lot of people tend to use the credit cards in the same way as one would use free money.

When the bills come, and the income just cannot keep up with the repayment dues and other obligations, the person has the choice of not paying the dues, consequently incurring penalties which may add up and leave him in deeper debt.

But, by choosing to avail of debt consolidation, he can ease himself out of debt.

Debt consolidation is the method of taking on another loan to pay off other loans.

In brief, you are securing one debt to pay off others. While this may sound absurd, it does make sense when you learn its mechanics.

The transfer of the debt may be done from several unsecured loans into another unsecured loan, but most of the time it is done through a secured loan which is put up against assets which serve as collateral, usually a house.

Debt consolidation could be applied for because of a few main reasons.

The aim may be to get a lower or fixed rate of interest or to make the task of paying off multiple loans much more manageable.

Debt consolidation programs are often resorted to by people who  are desperate to improve their credit ratings somehow.

This could be the final attempt before filing for bankruptcy. Debt consolidation companies sometimes discount the amount of the loan, and then buy this loan at a marked down  balance.

In this regard, the debtor may easily search for debt consolidators who may pass along some of the savings from the debt.

At the same time, if the debtor is unable to avoid bankruptcy, there will be no way in which he can deal with the debts that pile up.

When it comes to credit card debts,  debt consolidation is one of the best ways to go.

Credit cards  carry  significant penalties and a relatively larger interest rate than most unsecured debts.

Having several cards, each with its own set of terms for servicing can result in higher than expected debt with longer payoff times.

People who are choosing debt consolidation can secure the loans under the security of  assets such as real estate.

This results in a lower rate than the previous debts, and the total interest and cash flow paid to the consolidated debt is considerably lower.

Thus, the loan tends to get paid off sooner thanks to the lower interest charges.

Companies often charge high fees, usually the legal maximum, for debt consolidation services because of the advantages  of using this option to manage debts.

Debt consolidation not only offers consumers lower interest rates by requiring one payment at a fixed rate for all debts, but also eliminating debt in a shorter time frame.

The debtor must understand that debt consolidation is a casualty controlling maneuver that requires discipline.

If the debtor is a chronic overspender, this will only be a temporary solution.

It is therefore necessary for the individual to avail him/herself of credit or debt counseling services to prevent a relapse or recurring situation.

Becoming and remaining debt free requires a new outlook on spending in relationship to earnings.

Image courtesy of renjith krishnan at FreeDigitalPhotos.net

17 Amazing Steps To Debt Freedom

Debt Freedom Debt freedom can be experienced by you,follow these simple steps and you will be debt free. Many of us live with debt in our lives. Whether it is paying off a vehicle, a mortgage, University fees or credit card bills, most likely all of us owe debt in one way or another.

It was Balki Bartokomous who said ‘I am in debt. I am a true American’. However, debt can easily spiral out of control and become crippling.

When you are in a pit of debt and spending, it can be hard to see any way out. Yet, you are not alone. There are many people experiencing the same situation.

Follow these 17 baby steps to debt freedom, and like many others individuals before, you will find yourself free of your debts.

1. Assess your debt in  order to experience a life of debt freedom

To begin with, you need to look at the types of debt you have. There are two types of debt- good debt, and bad debt.

Good debt includes mortgages and student loans, as either your home or your services have more value as times goes on. Bad debt is debt that has a high interest and little to no value- such as car repayments and credit card debt.

2. Talk to your creditors.

Many people who are in debt will be too afraid to speak to their creditors. However, if you want debt consolidation then your creditors can often help. See if they can offer you a lower interest rate or a settlement fee- a fee at a lesser rate if you pay it all in one go.

3. Assess your steps to financial freedom.

You have two options here. The first, is to pay off the debt with the highest interest rate first. Pay all your other debts with a minimum repayment, except for this.

Once this highest interest rate debt has been consolidated, you will have less repayments each month and it will be easier to pay off the rest. The other option is to do the opposite- pay off the smallest loan first.

This is Dave Ramsey’s steps to debt free living option. Ramsey says: ‘The math seems to lean more toward paying the highest interest debts first, but what I have learned is that personal finance is 20% head knowledge and 80% behavior.

You need some quick wins in order to stay pumped enough to get out of debt completely. When you start knocking off the easier debts, you will start to see results and you will start to win in debt reduction.’

4. Choose your payment method.

The first option relates to credit card debt. Take out another credit card with a lower interest rate, ideally one with the first year at 0% interest, and transfer the balance of the higher card to the lower. You will pay less interest and pay the debt off more quickly.

5. Take out a loan.

If you can, take out a personal loan from the bank. The interest rate will be lower than credit card debt, so use this loan to pay off your other debts more quickly and save money. Never use an online personal or payday loan- the fees are extortionate.

6. Use any savings you have to pay off your debt.

This can be risky in the long term, as your circumstances regarding employment or health may change, however in the short term it will bring you to debt free living.

7. Set yourself some goals.

Henry Shaw says “Debt is like any other trap, easy enough to get into, but hard enough to get out of.” this does not have to be true. Use baby steps to become debt free and it will become easier. One of the baby steps is to use goals.

Set goals of paying off a loan in a certain time frame, another debt in another time frame, and divide that amount of time by the amount of months so you know how much you should be paying off each month.

8. Assess your everyday spending in  order to experience a life of debt freedom

Gather all of your monthly financial information- bills, rent, transport, food shopping, non-necessities. Be true to yourself- do not leave anything out- make sure that you acknowledge every penny that you spend.

9. Create a spreadsheet in order to experience a life of debt freedom

On your computer, use Excel to create a spreadsheet of your spending. Use one column for your fixed monthly expenses- these are things you have to pay, for example your utility bills, your rent or mortgage, and the amount you want to pay back on your debt.

Use the other column for your monthly earnings. Now, minus the tax, insurance, anything else that comes out of your earnings. This will give you an accurate number of how much you earn each month.

10. Create a budget in  order to experience a life of debt freedom

Take the amount of money you earn each month, and minus the amount of money you spend on your monthly expenses, including your debt repayment. What you will be left with is the amount that you can spend on ‘other’, such as entertainment, food, clothing.

Look back at the financial information you gathered earlier and see how much you usually spend on these things,and compareDebt Freedom to how much you now have to spend.

Keep using the spreadsheet. Write down everything that you spend in here, make it a part of your life.

If you are finding it unrealistic to live on this budget, then adjust the amount that you want to pay back of your debt.

11. Make sure that you stick to your budget.

To make sure that you stick to your budget, allocate finances for each category- entertainment, food, etc. Put the money for each expense in their own envelopes.

This is a great way to keep track of how much you have spent and how much you have left to spend. Take Andrew Jackson’s advice: “Live within your means, never be in debt, and by husbanding your money you can always lay it out well.”

12. Make debt repayment plan and budget 

With your debt repayment plan and budget in mind, make small adjustments to your everyday life. Take these baby steps to a life of debt freedom.

Start walking wherever you can to save money on gas. If you do have to drive, then combine your errands into one trip. If you usually drive yourself or children to extracurricular activities, see if you can carpool.

13. Become a thrifty spender.

It is easy to spend more than we have when buying household items and food. You need to be conscious of how much you are spending. Become a coupon cutter and a voucher saver- every penny will help.

Take a shopping list with you so that you do not throw in items you do not need. Take the budgeted amount with you and take a calculator or your phone, adding up the items as you go along to make sure you do not overspend. Go for the basics- buy the home brand version of everything.

14. Even better- do all of your shopping online.

Use the internet to purchase your weekly groceries. This way, you can compare the prices of all of the goods, look at how much you are spending and take advantage of all the deals.

15. Sell off what you do not need.

There are so many ways that you can sell your unwanted and unnecessary items. You can use apps such as Depop to sell old clothes, and sites such as eBay and Gumtree to sell off clothes, furniture, DVDs- anything.

Get your items into the best condition possible and use excellent wording to really sell your items. Be brutal- don’t hold on to anything that you do not need or use.

16. Change the way that you spend money every day in order to experience a life of debt freedom

The best way to be spending money- to use cash. Dave Ramsey says: ‘Debt is dumb. Cash is king’ and he is right. It is easier to keep track of your spending as you have the money right in front of you, you cannot borrow from what you do not physically have.

Of course, there are some things that you cannot pay for with cash, however use cash for all of your daily expenses. Definitely do not use checks. These are very rare these days anyway, simply because they take so long to process.

You can write a check when you have money in the bank, yet it may not be processed until three weeks later when you do not have the money to cover this in the bank, so you hit fees every day until you can cover the cost of the check.

‘Don’t let your mouth write not check that your tail can’t cash’– Bo Diddley. Whatever you do, do not use credit cards. They have the highest rate of interest. This is not money that you have, it is money that you are borrowing, so stop borrowing. Cut up your cards to avoid all temptation to use them.

Debt Freedom

17. Reward yourself.

This is going to be a long journey to living a debt free life, so make sure that it is a lifestyle change and you do not slip back into your old habits. Let yourself have a treat when you have paid off a debt- like going out for a meal or having a drink at the bar with your friends. Yes, you have to be frugal, but you can treat yourself once in a while (as long as you do not go crazy and undo all of your hard work!).

Follow these baby steps to debt freedom and you will be living a debt free life. It may take months or years, but eventually it will happen to you. Just remember to stay on track- do not make any excuses and do not let yourself slip. If you do slip, just get right back into the habit of living to a budget.

Debt makes slaves of us all, handing over money each month to pay back money we once borrowed. Heed the words of William Shakespeare: ‘Neither a borrower nor a lender be, for loan oft loses both itself and friend, and borrowing dulls the edge of husbandry’.

Free yourself of your debts- and enjoy a life of debt freedom today.

 

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Best Debt Consolidation Program

ID-10096073If you’re deep in debt and having difficulty paying your bills, one of the best sources of debt consolidation advice and help is a credit counseling company.

You might be asking the question,  How do I, Find The Best Debt consolidation Program.

Credit counseling companies can offer you debt consolidation advice including how to use credit lines wisely, helping you to establish a workable budget, and how to keep track of your bills and best manage your money.

A trained and certified debt consolidation advice specialist can arrange a repayment plan with all of your creditors and place you on the track to financial security.

Once you have selected a reputable consolidation advice agency, you will be asked to provide information about your income, expenses and debts.

The counselor then evaluate the information and discuss your situation with you before making recommendations and offering the most appropriate debt consolidation advice for your situation to help you address your financial problems.

Some useful pieces of debt consolidation advice may be participation in an educational class, enrolling in a debt-management/repayment plan.

However, the debt consolidation advice may extend to areas other than financial which include referral to another organization, such as a relationship counseling or state employment agency for assistance.

After all, the debt consolidation advice service understands that there are many underlying factors that led to your financial difficulties and that these also have an impact on other areas of your life.

You need to spend some time researching your options and take extra care to select a reputable debt consolidation advice agency.

Most importantly you should be able to find a debt consolidation advice agency that has satisfied clients, offers personalized service from trained counselors, can educate you how to make appropriate financial choices and will provide you with the tools you need to achieve financial security.I recommend National Debt Relief.

National Debt Relief is one of the country’s largest and one of the most reputable debt settlement companies.

They are made up of energetic, smart & compassionate individuals who are passionate about helping thousands of Americans with debt relief.

Most importantly they’re all about helping they customers through a tough financial time in their lives with education and individual customer service.

They are dedicated to helping individuals and families rid their lives of burdensome debt.

They specialize in debt settlement and have negotiated settlements for thousands of creditor and collection accounts.

They provide our clients with both our expertise and our proven results.

This means helping consumers in their time of hardship to get out of debt with the least possible cost.

It can also mean conducting financial consultations, educating the consumer and recommending the appropriate solution.

They core services offer debt settlement as an alternative to bankruptcy, credit counseling, and debt consolidation.

They will become your number one advocate group to help you re-establish financial stability as quickly as possible

Don’t be tempted to think that just because a debt consolidation advice company has a big advertising campaign means it is the best.

Quite often the only reason that a debt consolidation advice service has placed large and numerous adverts in various forms of media it is because they have not got enough clients!

You would also be wise to ignore telephone calls or e-mails that arrive out of the blue from debt consolidation advice companies offering their services.

The best debt consolidation advice services will often rely on past clients for referrals; they do not need to solicit business through constant television advertising, infomercials, and telemarketing or spam e-mails.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net