If you are in need of bad debt help, you are certainly not alone. Millions of people just like you are struggling to gain control of their finances, spending and credit. It’s easy for things to get out of hand, especially in today’s economy where people are expected to work more for the same wage while the cost of living continues to rise. If you need bad debt help, below are tips to help you regain control again.
Stop Using Credit Cards
May people assume that they should immediately close their credit cards but this essentially lowers your credit score. What you want to do is stop using them and get them paid off. If you have enough available credit on one with a low interest rate, move the balances to that card.
If you continue to use your cards, all you are doing is digging yourself a deeper hole. It’s like shoveling away one pile of dirt and adding two more, you’ll never get anywhere if you continue to do this.
Change Your Spending Habits
Nearly everyone looking for bad debt help has things that they could spend less money on. It is equally important to evaluate the way you do your shopping. Do you just head to the store and pick things up on impulse? If so then you’re likely spending a lot more than you should
One of the rules to live by if you are looking for bad debt help is to become more aware of how you spend. Keep a journal of all the money you spend every day, you’ll likely see that there’s room to cut quite a few expenses out. When you go to the grocery store, write a list and stick to it. Don’t be afraid to use coupons, it adds up!
Of course, cutting back on expenses includes utilities too. How long do you let the water run when you’re not using it? Do you make a point to turn lights and electronics off when they’re not in use? Are you using energy-efficient appliances in your home? If you need bad debt , you need to look at the big picture and look for opportunities to reduce spending everywhere that you can.
Create a Budget
It’s a lot easier to follow a budget if you actually have one. Anyone can say they’re going to reduce their spending so they can get out of debt but those are just words. Taking the time to sit down and write a realistic budget that you can follow makes you more accountable for your actions. You’re able to reevaluate if you are staying on track and you’ll essentially be gaining control of your spending.
Keep in mind that when you create a budget because you need bad debt help, you should make sure that you leave room for miscellaneous expenses. Having every penny of your income designated to paying for something leaves you no room for those unexpected emergencies that tend to arise when it’s most inconvenient.
Create a Nest Egg
Fair enough, you’re probably wondering how you can afford to put money away when you can barely afford to fill your gas tank up, right? Well, saving doesn’t mean that you have to set aside a large chunk of your income. Even setting aside $10 a week will add up over time and it’s better than nothing! This is money that you will have if you need a washing machine repair, new tires for the car, etc.
If you have direct deposit at work, you should be able to designate a small amount to go to a different account or even to a prepaid card. If you never see the money, you won’t miss it.
Make Your Intentions Known
If you need bad debt help and you’re dedicated to making a budget and cutting back on spending, make your intentions known. Make sure that everyone in your family knows how to help. Kids can do their part by learning to not be wasteful, turn the water off when they’re brushing their teeth, etc. Everyone can play a role, every little bit does help.
It’s equally important to let your friends know as well. If your friends always meet at an expensive martini bar and you constantly make excuses that you can’t go instead of being honest with them, they’ll feel like they’re getting the brush-off. There’s no reason to isolate yourself like this.
You may be surprised at how supportive your friends can be when you’re honest with them that you need bad debt help. They may be willing to skip the bar, grab some drinks and a DVD and stay in with you. If you can’t afford your gym membership anymore, there are probably even a few of your friends who would be happy to meet you at the park for a morning run.
Besides, if you tell people you’re looking for bad debt help, you will likely find many others who are in the same situation as you and grateful to have someone else to talk to.
Pay More than the Minimum
Without a doubt, it can be extremely difficult to pay more than the minimum amount due but even a few extra dollars makes a difference. Interest costs you a lot of money! It may make a significant dent in your budget right now to pay more than the minimum but overall, it’s saving you so much more.
Do you realize that if you have a credit card with an 18% interest rate and a $1,000 balance, it will take an average of 13 years to pay it off if you only make minimum payments? Not only that, you’ve spent an additional $1,115.41 in interest! Yes, you have paid more in interest than you spent on whatever you bought in the first place. Do you really have that kind of money to throw away?
Don’t be ashamed to seek bad debt help. It is suggested that the large majority of the population is in debt and looking for the same answers as you. Take it one day at a time and you will gain control again!