If the answer is yes, maybe these practical tips can help you to get out of debt:
- Take a note of all your income, how much it is and where it comes from.
- Write down all of your fixed costs, make a list of all your bills, such as how much you pay for your mortgage (rent), insurance, transportation, groceries, phone bills, everything.
- Trace back where the rest of your money has gone after you paid all your bills.
By doing those 3 important steps, you will find out what you have done to your money recently.
If your expenditures are over your income, you are at the edge of debt, whether it is credit card debt, personal loan, or others.
By doing all those steps will not make you get out of debt. You have to act, a real plan to work out.
Here are some steps you can do :
- When you receive an income, please make a top priority of paying your debts. You can start from paying debts with the highest interest rate.
- Try to live with the rest of your money. Maybe you have to cut some unnecessary expenses, less dine out, even lower your quality of life. Cutting excesses of living expenditures will not do you any harm as much as your neck chocked by your debts.
You should not worry, because all of those expenditures will be cut only temporarily. When every debt is paid, everything can go back to normal again.
You look at the bright sides. A little walk to the office will make you healthy, less dine out will lower your cholesterol. Thus, at the end of the day, when you are out of your debts, you can start creating your financial safety.
Moreover, by discipline yourself, you will earn new habits. You may not be much interested in shopping luxurious items or fine dining as much as before, but instead you will be more interested in building your personal wealth.
