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How to escape debt
How to escape debt

No Money, Still Problems – How to Escape Debt and Stay Out For Good

Are you ready to see a financial change in your life?

Whether it’s due to the lagging economy, unwise decisions or simply bad luck, many people live under the constant strain of debt and the uphill struggle to get out of it.

Not everyone can afford a financial advisor, so we did the research for you.

Our list of tips is realistic, practical and effective:

When You’re in a Pinch—Think Carefully

Of course, you can’t predict the future. What if you do everything right and life simply happens?

A medical emergency or damage to your car could mean that scarce cash resources need to be diverted from daily necessities, or paying off debt.

Many consumers who need cash urgently opt for payday lenders under the mistaken belief that they’ll be able to pay it off at the end of the month.

This is risky, as they simply add more debt to your list of concerns, at high-interest rates.

A more manageable way of obtaining the cash is researching small cash loans online.

Many not for profit or community organizations offer more manageable interest rates and conditions as they’re focused on helping you through your difficulties, rather than making a quick buck. We all need help at some stage in our lives, so make sure you pick the right partner to ask for assistance.

Get a Foundation: Do You Have a Budget?

Having debt can be so daunting that many consumers live in denial, without a clear picture of their monthly financial situation.

Get courageous and draw up a summary of the following:

  • All known income sources
  • Regular expenses
  • Any available savings
  • Your debt

There are many budget apps online to help make this easy. Update your budget regularly, so you don’t accidentally spend more than you should because you thought you had enough cash flow. A firm budget also becomes a practical way for you and your partner to keep each other accountable.

When you know you’ll both review your spending, you’re less likely to indulge in impulsive spending patterns. It might not be fun, but it’s necessary.

Remember: Each dollar you save can go towards paying off debt.

Can You Cut Down?

Make your budget very detailed and log what you buy. How much do you spend on items you don’t really need?

  • Alcohol
  • Cigarettes
  • Entertainment
  • Eating out
  • Gambling
  • Take our food and beverages

Momentary gratification and lack of forwarding planning may be robbing you of long term financial freedom.

The Magic of Paying More

Now, what do you do with this money you’re saving? A common mistake is comparing a few dollars saved with what you owe and thinking it won’t make a difference. Say this to yourself the next time you want to spend those extra dollars on coffee: Every bit helps.

Every additional dollar utilized to pay more than the minimum or to make extra payments during the month has a long-term effect. It can boost your credit score and the interest you pay will be start to drop as you chip away at the principle.

This also gives you a new use for any windfalls that may come your way. A tax return or cash birthday gifts will now have a new purpose: Paying off your debt, rather than heading off to engage in some retail therapy.

Sacrificing momentary pleasure for long term success pays huge dividends in the long run. When you see zeros on your credit card balance down the track, you’ll thank yourself for that bit of patience and discipline you exercised today.

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About StephanJ

Stephan J is the founder of Monetize.info and is making a living exclusively online since 2004. He tried and managed to make good profits on everything from Forex trading, options, website flipping, adsense, affiliate websites.His passions are cycling, fitness and he is spending a small fortune on watches and fine cigars

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