Help Reducing Debt

By Chris Jones

How can I get out of debt fast?  What’s the top ways to eliminate debt?

Once you feel the burden debt puts on your life it means you are usually in debt at least waist deep if not over your head.  Debt causes stress and tension which leads to more of life’s problems like divorce, unhappiness and health issues.   When people realize what has happened they want to change fast.  They want to rid themselves of the debt which is holding them back from enjoying life.

On Frugal Wizard we want to help you get out of debt as fast as possible.  We know what it is like to live in debt and to work day in and day out to pay your bills.  Just getting by to only make other people richer is not fun!

There are two major changes that can propel paying off your debt. The first way is through increasing your income.  The second way of paying your debt is lowering your monthly payments to free up more money to pay down your debt.  Here’s your 30-day financial challenge: find several options from the list below get to work and take action today!  Build up momentum and as you add more and more of these options, you will see the light at the end of the tunnel.  Every month is a new 30-day financial challenge to add more ways to save and earn.

Remember, the sooner you get started in your debt destruction process, the sooner you will experience that “high” called debt freedom.  The euphoria of being debt free is out of this world.  Debt = misery because when you have it you’re forced to do things you normally wouldn’t put up with.  For instance that commute to the job that you can’t stand.  If you had no debt and controlled your living expenses maybe you could get a job closer to home even though it meant taking a cut in pay.  Being debt free is freedom!

The corporate world is always trying to put us in debt so we have to keep working to make them richer at unbalanced wages.  The last time I checked a CEO puts their pants on the same way as the janitor.  Granted they might have an education difference but that doesn’t make it correct to have such a huge pay difference.  Some CEO’s make well over 2 Million a month compared to a janitor who can’t make that working there for 30 years.  Where I am going with this is take it back from these rich thugs.  Even a janitor can get their freedom back with taking control of their money and getting debt free.  Once debt free they become freer to find other available jobs.  Or to start their own cleaning business because they are debt free they have many more opportunities.

3 Main steps in Help With Debt:

  1. The first and foremost way to eliminate debt is to stop spending. You have to know each and every month what you’re spending your hard earned money on. Over the next 30 days take each bill to analyze it see how you can cut it down.  Honestly, do you really need all those cable channels?  For example during those 30 days what cable channels did you watch?  Were they only local channels?  Can you watch the channels online for free?  I hope you’re getting the idea that for each and every bill, to analyze it, break it down and figure out a way to cut.  Another example is the utility bills, can you start turning off your computer instead of leaving it on?  Can you wear a few more clothes during winter and turn down the heat?  Getting out of debt takes lifestyle changes.  It was your lifestyle that got you in debt now make a change and use your lifestyle to get yourself out of debt.

Make sure to check those credit card statements for a full year.  You might find out that something like a magazine subscription was set up on automatic billing.  If you don’t read through it line by line these are easy to miss on a big bill.   You might also think it’s only $10 but when you have 10 of those thoughts that is $100 which is a big amount in eliminating debt.

If you must keep the cable or some other monthly recurring bill call and shop around!  Call the current company you’re with ask for the retention department.  Put on your negotiating shoes and ask to pay less.

  1. The next big step in paying off your debt is making more money. If you have lowered all the bills you can the only other way to accelerate paying off those bills is to raise your income. You can do this by asking for a raise.  Increasing your pay can turbo boost your debt repayment and it is as simple as asking!  What do you have to lose?

Getting a part-time job! If you can’t earn more at your current job there are lots of seasonal opportunities. These can be a great temporary infusion of cash to help you reach your goals quicker.

  1. Get lower rates on your current debts. For instance, maybe you can refinance your home using the equity to pay off all your debts.  This might even make the interest payments tax deductible.  I do caution doing this!  If you have not gotten your monthly expenses lowered and changed your lifestyle yet this can do more damage than good.

Don’t have any equity?  Then call and talk to your creditors.  Ask for a lower interest rate.  What do you have to lose?  Get calling now as this can save you hundreds if not thousands.

Other Debt reduction Methods:

  • Carpool to save on gas and wear and tear on a vehicle
  • Double check to make sure you’re getting all the tax deductions and credits you are eligible for.
  • Make sure your credit card gives you cash rewards and use the rewards to pay down your debts
  • Need a date night? Do survey’s to earn the extra cash and use coupons.  Don’t go into debt dining out.  It is easy to rack up a huge bill.  Also if you do take half your dinner for lunch the next day at work.
  • Brown bag your lunch
  • Yard sale all the junk sitting around your house
  • Sell things you don’t use on eBay and Amazon
  • Try cutting back on bad habits like drinking soda pop or alcohol. Not only will your pocketbook thank you but your waistline will too.

Drowning in debt is no fun and not a way to live life.  Being debt free and in control of your finances is the way to have full control of your life.

If you have other unique ways to save money let everyone know by commenting below!

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