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Creative Ways To Pay Off Debt - Finding The Money

By Edited Nov 13, 2013 2 3

Lets face it, life get busy. If you work long days or in a stressful job, then have to deal with kids, dinner, house and more, trying to sit down with out bills is not at the top of our list. But you had noticed that debts have not been getting paid, so just what are some creative ways to pay off debt, that won't deprive you, or have you taking on another job.

Creative ways to Pay off Debt - Whether you like it or not, the first order of business, is to see where you actually are sitting with regards to how much you owe and to who. You need to decide just who should get paid first with your hard earned dollars.

Step One - Start by making sure all your bills are correct, and that you are paying them on time, as this can create late payment charges, or over the limit charges if you tend to go over your credit limit with your card bills. Once you have dealt with that, now you see exactly how much you owe. This is your true debt. It if takes you a day just to find your bills and statements, that is OK, this is the first step, and it is good to break it into baby steps so you don't feel so overwhelmed.

Creative Ways to Pay Off Debt - Knowledge is king. What this means, is that once you have really looked at your bills and have seen just how much you need to spend each month to service these bills, whether the news is good or bad, you should feel more in control. Avoidance just creates more stress, have all the facts now, you can come up with a game plan.

Step 2 - If you have other debts, besides credit card debt, then you need to look closely at them and figure out which ones will cause problems if they don't get paid, or maybe they are tagging on huge fees, because they were not meant to be paid in "payments" per month. Bills such as:

Property Taxes

Back Taxes

Child Support

Mortgage payments (if you have not been paying the full amount)

The above bills are serious issues, if you don't stay on top of them. Property taxes can add up quickly if you don't stay on top of them, the longer you don't pay them, they can seize your house, so really work hard to keep them paid. You could be paying huge late payment fees on these bills.

So, what do you do, if you just don't have the money to spread around. What are some ways to pay off debt that won't hurt too much.. You just can't seem to come up with bigger sums of money to pay off these bills.

Creative Ways to Pay off Debt - Tweak. This means you need to go into tweaking mode, which means really looking at every corner of where you spend money. If you are not sure what you spent your cash on this week, take a notebook and write down everything, or collect all the receipts, but this can be hard at coffee shops, so writing down works well. Just a quick jot down. then add it up at the end of the week, it might surprise you.

Step 3 - Identify some areas that could use tweaking. Do, you buy a coffee everyday on the way to work? Could you make a coffee at home and use a traveler? If not, consider investing in a coffee pot machine for your office or work, and have a few people contribute it will still be cheaper than keep buying coffee. Remember, you took the time to stop for this coffee, you probably can take the time to make it.

Example: If you bought coffee twice a day at $1.25 each. That is $2.50/day = $12.50 per week.

You may think, big deal, that is not enough to pay off debt. But that is just a start.

Do, you take your lunch to work? Or do you buy it?. That 5.00 dollars per day can add up big time, or more. You may be spending more, but lets assume five dollars. Make your lunch the night before, throw it in the fridge and have a pot of coffee ready to go on a timer, so that when you get up, your coffee is ready, and your lunch is ready to go.

Example: If you pay $5.00 dollars a day towards lunch, that is $25.00/week. (assuming a 5 day work week).

Creative Ways to Pay Off Debt - Takeout. I know it can be nice to just pick up the phone and order a pizza, but if you can just plan dinner the day before, such as with a crock pot or slow cooker, you can be making your lunch the night before, and also getting supplies out for the slow cooker. Put them in the cooker, and place the container in the fridge along with your lunch. Now in the morning, put the container in the slow cooker, switch in onto low, and then grab your lunch and your coffee and go.

You will get home and the house will smell great with dinner. If you know dinner is ready and waiting at home, you will not need to stop for pizza. Just serve.

Example: If you spend $30.00/wk on pizza that is $120.00 per month.

Creative Ways to Pay Off Debt - The idea behind the suggestions above, is that small change which can also be known as "silly money" can easily slip out of your pockets with a dollar here and a dollar there, they seem innocent enough purchases, but they add up.

If you need to be making bigger payments on your debts, or you just want to say goodbye to debt, then you have to take a look at daily spending.

Now, if you are having trouble paying those most important bills such as property taxes, phone them up. They will try and help you. If you talk to a live person, you can work out a monthly payment plan, and this will stop those nasty additional charges that will just keep the bill growing. If you can't pay it off all at once, then tell them. Don't just let these bills fester. You need to be proactive here.

Once you have made a plan with the most important bills that is affordable, then you can take your extra money you may have found with the above examples and apply it to these bills when you can, or if they are dealt with, then move on to your credit card debts.

With the above example that spending adds up to

$12.50 per week in coffee = $50.00/month

$25.00 per week in lunch = $100.00/month

$30.00 per week in takeout = $120.00/month

This total = $270.00! That can be an extra payment on a credit card, and that is only dealing with coffee, lunch and some pizza. Depending on your lifestyle you can find more. Did you know if things are really tight, you can use the internet at your local library for free, and get rid of yours, you can also borrow movies, or some will have a very low fee.

If things are really tight then you have to not only look for creative ways to pay off debt, but also creative ways to have fun for little or no money. So, look for any leaks, a few dollars here and a few dollars there may not seem much per day, but they add up big time.

Also See: How To Lower Credit Card Interest Rates - Don't Let Them Bully You and Best Ways to Pay off Credit Card Debit - Without Depriving Yourself and How to Pay off My Debt - Don't Work for Free and How to Pay Off Bills - Don't Let Them Suck You Dry for more tips and ideas to get your finances back in your control.



Jan 3, 2011 2:26pm
Hey Sookie, some great advice to start the new year off right! The first rule of making sure the bills are correct is important!! I have caught a few errors in the past and it saved me some money. Good article, thanks!!
Jan 3, 2011 6:49pm
Great advice for anyone with a lot of debt. Most people spend more money than they realize.
Jan 3, 2011 9:44pm
Good advice on how to pay off debt. Like the old saying "watch out for your pennies and your dollars will take care of themselves." Thanks for sharing.
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