| Far too many people believe that Do It Yourself Debt Reduction will be too difficult, so they don?t even start trying. They begin looking for the easy way to get rid of their debts or aim at solutions that may end up getting them in even deeper trouble rather than helping them.
Do It Yourself Debt Reduction is more about learning to find a little discipline and then working towards a specific plan of attack. If you stick to your plan no matter what happens, you?ll be debt free. It?s really that easy.
Here?s an easy do it yourself debt reduction plan you can work on. Remember, this is your debt and your income, so you should always work towards creating a plan that is comfortable for you and your unique financial situation.
Step One: No More Debt If you?re trying to reduce your level of debt, then it?s vitally important to stop adding to your balances at once. This means no more spending on credit. Don?t apply for more credit. If you have bills that need to be paid or you see things you want to buy, you?ll have to find other ways to pay for them. Don?t use any more credit.
Step Two: Reduce Costs Most people begin tightening their belts on their own when things get tough financially. Unfortunately, they work on reducing costs in areas that really don?t have that much effect. Will switching off one light bulb really help you? Or would a reduction in your repayments make a much bigger difference?
Work on reducing your largest costs. This means finding ways to reduce how much you pay each month on your repayments. Catch up any past due payments so those penalty interest costs stop. Consider balance transfers to lenders offering lower interest charges. Work out if a debt consolidation loan can save you any money. Do some comparison shopping for insurance products that might charge a little less.
Step Three: Prioritize If you didn?t have to find the cash to make repayments on all your combined debts, how much extra money would you have to spend each month? Usually the answer is quite a few hundred dollars. The next time you?re tempted to spend money on an impulse item, ask yourself if that same money could go towards getting rid of a debt somewhere else. When your next pay check arrives, allocate your money carefully towards paying your bills and expenses first. Whatever is left is yours to spend on other things.
Step Four: Create a Plan and Stick to It Take a careful look at your current debts. Work out which one is costing you the most in interest charges and then begin working towards reducing the balance of this debt whenever you can. If you don?t have any excess cash from your pay check, then hold a yard sale or open an eBay account and find ways to get that balance down. When this first debt is paid off, turn your attention to the next debt in line.
Do it yourself debt reduction isn?t difficult, but it does require discipline. If you?re determined to find ways to get rid of your debts, then sit down and work through a realistic plan of attack and then stick to it. |