This article is not about canned advice on how to get out of debt. It is not about listing the hundred “common sense” techniques that you thought of on your own. What we would like to do within this post is explain a few debt solution strategies you may not have thought of yet. Let us know what you think.
This article is not about canned advice on how to get out of debt. It is not about listing the hundred “common sense” techniques that you thought of on your own. What we would like to do within this post is explain a few debt solution strategies you may not have thought of yet. Let us know what you think.
#1: Online budgeting tools. You know they’re out there but you have been putting it off. Sites like www.mint.com allow complete analytic data about your budget, at absolutely no cost. Another strong tool is YNAB, you need a budget. This tool automatically generates a strategy in addition to offering analytics data.
#2 Cash is now your best friend. Credit cards are probably what got you into this mess. And they won’t help you get out. Pretend like you’re in the mob and start carrying wads of cash wherever you go. The reason is simple: Money means something. Plastic doesn’t. You will be less likely to part with your hard-earned cash if it is sitting in your pocket. And if safety is an issue, simply carry smaller denominations.
#3 Frugality through different eyes. Being frugal does not just mean cutting back. It means truly evaluating wants and needs in life. Go through all your monthly expenses and ask what would happen if you cut that out. Would the consequences be SO terrible? Could you tolerate living in a smaller space? Driving an older car?
#4: Don’t try but do. Develop a plan in advance. Take time to make it as effective and realistic as possible. Then never diverge from that plan. The plan is your saving grace. If there is every a chance to deviate from it, do not take it.
#5: Use balance transfer credit cards if you HAVE TO use credit cards: If you must use a card, consider going balance transfer. Switching the balance from a high interest rate card to a lower one will help you save money. Balance transfers do cost money but if you do it fast enough, with enough cards, you may be able to save yourself money.
#6: Savings. Once you start paying your debt off, use a similar technique to ensure savings. Once your money begins sitting in a savings account it will work for you, rather than end up in the hands of credit card companies.
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