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Reduce Your Debt To Zero
If you are burdened with debt (or you know someone who is), Ruth Klein, America's De-Stress Diva offers eight practical tips to get out of this debt trap quickly.
Because our economy has slumped, many folks are now using their disposable income to pay off debt and it generates a high level of stress. You can lower both your debt ration and your stress by using these eight de-stress tips to whittle down that debt.
1. Enlist your family. Enlist the support of your family to honestly assess your debt crisis, and pro-actively participate in a plan to reduce all unnecessary spending. Start closing charge accounts. Credit cards should not be used unless it’s a true emergency. Be blunt. For example, ask your child if it is more important to get an iPod or have a roof over his head.
2. Be honest with creditors. Don’t avoid those incoming telephone calls. Be honest. Be blunt. A client who received no help when he first talked to creditors re-called them later to say he was considering bankruptcy. That magic word was all it took for most of his creditors to immediately reduce interest rates and arrange a longer-term plan of repayment.
3. Plan your expenses to match your income. Erase all thoughts of impulse buys. Look at your buying options in black and white and work your numbers before you make an impulse decision. These are tough times, so be tough with your budget.
4. Consult a consumer credit counseling service. They now exist in every state, in every large city and in most or near smaller communities. Even if you decide not to attend classes, visit the Web sites of these services, since many contain free debt reduction tips you can read or download. Share what you learn with family members or roommates.
5. Create a debt repayment plan on paper. Place all that you owe in Column A and put your payments in Column B. In Column C, list discretionary monies and in Column D, make a list of your necessities like utilities and food. Don’t just think about your debt. Make a plan on paper, and stick to it.
6. Revisit and revise your plan. Revisit your plan at least once every 30 or 60 days to make any necessary revisions. Once you get used to cutting out extras and making each dollar county, it will become a habit. The only way you’ll remain out of debt is if you put this plan into effect for your lifetime. . 7. Practice patience. Getting out of debt comes with no quick fixes. Tell yourself to be patient. When you start to panic, breathe deeply, and tell yourself to be patient. Breathe deeply again, and mentally envision releasing that panic as you exhale. Do this exercise as many times as it takes to allow yourself to relax.
8. Simplify your life. Stress can rob you of the pleasure that you think will come with spending extra on vacations or personal items, especially when that spending only exacerbates your debt. Stress also leads to serious health problems, and there is no faster-rising expense than health care. Be smart. Simplify. Your reward will be a less stressful, happier life.
Being in debt is stress filled and keeps you in the debt trap. Getting out of debt through using these common sense techniques will help you keep your disposable income for happier things.