How can I reduce my debt?
O D asked:
I am in big trouble I don`t know how to administer my money I am a spender. Now I`m in debt with credit cards and I want to pay. I can`t get another job, is there any online or free service that helps you to organize your debts and payment or another way of getting help to organize and cancel your debts?
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I am in big trouble I don`t know how to administer my money I am a spender. Now I`m in debt with credit cards and I want to pay. I can`t get another job, is there any online or free service that helps you to organize your debts and payment or another way of getting help to organize and cancel your debts?
Content supplied by Yahoo Answers
Category: Financial Aid | Tags: reduce debt, Spender 3 comments »
February 8th, 2010 at 9:56 am
changed my life.
He has free material to help you set up on a budget to start spending less than you make, which is the key. It sounds like you biggest problem is that you are disorgainized. Once you put together a simple budget and see where you money is going you can gain hope.
He also teaches something called the envelope system which is simply pulling out the cash and putting it in an envelope dedicated to a section in your budget. For example, we allow ourselves to spend $100/month on eating out so we put $100 in an envelope when we get paid and when we run out of money in the envelope, we stop eating out. Simple as that. Then we repeat the process for other categories each month.
February 9th, 2010 at 8:58 pm
There are a couple of things you can do. Basically, you need to earn more and spend less. If you can’t earn more, you need to work on spending less. You can nearly always shave something off in every direction, and even pennies add up.
Look at your lifestyle. My 21 yo student son only occasionally goes out on the town now. His friends come here, they watch DVDs, play cards or on the Wii, or have a music jamming session. He visits their homes in turn. They buy their beer from off-licences. Students don’t have a lot of money to spend, but they do have fun. I bring a packed lunch to work, and so do my colleagues. Bringing your own jar of coffee to make at work saves bundles. We don’t eat out except as a treat – it is much cheaper to cook at home. If you look out for local things to do or see, there is a surprising number of interesting happenings within reasonable reach.
You could investigate a further credit card at 0° interest for transfers, and use the opportunity to get rid of at least one of your existing debts – but you do need to watch any new purchases – they won’t be at 0°. Use the cheap interest period to pay off all the debt if you can. At the end of this period, you will be back up to high interest rates on the lot. Or you could try to source one loan to pay off several of your existing loans at a lower rate of interest – suss out your local credit union. Repaying weekly is better than once a month for a few reasons – it is easier to fit into the regular weekly budget; it means your loan is lower each week so attracts lower interest all the time leaving more of your repayment to bring down the debt faster. If you have a monthly figure, divide it by 4 and round up the total to an even figure and pay weekly. This also means one month extra paid off each year.
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Keep a track of your daily spending for a couple of months – you will soon pinpoint where it was unnecessary and thus wasted. I have set myself a challenge to reduce my food spending, by being more selective about what I buy. So far (9 weeks) I have almost completely eliminated over-buying, there is almost nothing being dumped, and my shopping comes to about a third of what it did before.
If you can see this as a challenge, you will succeed. Good luck!!
February 9th, 2010 at 10:04 pm
Hi,
I used Credit Solution to settle my debt and avoid bankruptcy.They managed to reduce my debt up to 58% and improve my credit score .It’s legitimate . I came across this company on NBC News Special Edition.Check it out here: