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How To Pay Off My Debt - Don't Work For Free

By Edited Nov 20, 2015 0 2

My Debt - My Finances - Trying to get our finances under control, can be hard with the busy lives we lead. Sometimes it feels like we hit the floor running in the morning, but really our finances should be just as important as other chores we have to do on a daily basis.

Pay Off My Debt - Maybe we find working on our finances a horrible chore, that we compare to having a tooth pulled, but if you just work on it a bit each week, it may be scary in the beginning, but once you know exactly where you stand, good or bad, with your finances, then you can create a plan of action that will have you pay off debt fast, and put money in your pocket.

Pay off My Debt - Start Small - Many people basically know that their paychecks are being stretched, and they know they are using the credit card too much, so they don't want to see the ugly truth on paper, so they just figure one day they will sit down with it all and figure it out. But if you don't at least figure some of it out, you may find that you are paying too much for certain services, and that in reality, you don't need to find a way to make more money, you need to find a way to keep more of the money you have.

Pay off My Debt - Baby Steps - Don't feel overwhelmed. Don't feel that you have to figure this all out in one day. You may find that once you really get looking at your bills and debts, that you might keep going, but to begin with you should just break this all down into baby steps.

Baby Step 1 - My Debt - The first step is to find all your bills and paperwork. Anything that requires you to pay money out. You may have some things automatically being taken out of your bank, like mortgage, taxes etc, but try and find all your bills and statements that you pay yourself.

If they are all over the house, or if different people get the mail and they end up in drawers or still in the car, then this could take you longer. But having them all in one step is a great first baby step.

Baby Step 2 - Pay Off My Debt - Open all the statements for regular bills, such as utilities, cell phones, credit card bills etc. Really take a good look at these bills. Are you paying them by the due date? If not, you will notice Late payment charges on bills. Many companies, including utility companies are not shy about charging late payment charges.

So, your first job, is to set up a calendar or some system that will have you paying these bills a few days before that due date. If you tend to wait until the day before or on the day and pay on the internet or at the bank, chances are they are not getting through on time. Even with the speed of electronics etc, it can still take 3 days from when you pay it online to being considered paid. If you wait until the day before or on the day, then you will get hit with a late payment charge.

Pay Off My Debt Fast - Start Keeping More of Your Money - These may not seem like big chunks of money, but these add up. A friend of mine was paying over 100 dollars a month for late payment charges, simply because she waited until to close to the due date to pay, and didn't look at her bills closely. So set up a calendar with the new due dates so you won't forget. This should stop some of your money from leaking for no good reason. Don't just look at the "payment due" really look at how they came up with that number.

This is also the same for credit cards. If you want to "pay off my debt fast" look at these statements too. No matter how big the balance is, then you will deal with it, but what you should not be dealing with, is over the limit charges. This is a nasty charge that credit card companies are charging now.

At one time if you went to buy something, and you were going to go over your credit card limit, they would deny the purchase, but now they let you go over then charge a fee for the service. Even if you go over by 50 cents, they could charge you 25 dollars or more, so look for this on your credit cards. If this is the case, really add up how much you are putting on this card, be aware of how much you can spend before getting hit with this fee. Better yet, try and not use this card unless you really have to.

So, you may have saved a few dollars already if the above pertained to you at all.

Baby Step 3 - Pay off My Debt Fast - Look at any bills you may be able to reduce. Do you have multiple cell phones, cable internet or a home phone for example? If you have everything with the same company they will quite often bundle your bills into one, and give you a package that will save you money.

How many channels do you watch on TV? Really look at this bill, you could reduce the channel package for less money. With your cell phones, do you use all the minutes in your package? Consider going to a cheaper package.

The purpose of the above exercise, is so that you can "pay off my debt" faster, by stopping the outflow of silly money as I call it.

If you work at your job and make for example 15 dollars an hour, and you add up 100 dollars worth of late payment charges, over the limit fees and higher than you need cell phone bills, that mean you just worked over 6 hours for nothing, for FREE. If you look at it that way, then looking at your finances for an hour a week or so is a great investment in yourself.

Remember no one else will care about your money or finances for you, so this is up to you whether you want to work for free or not!

Pay off My Debt - By finding all the leaks in your budget, you can now apply this money to your major debts. Starting with credit card debt first. So before you run out the door looking for that second job. Really take a look closely at your bills. See if you can reduce fees, bundle services, spend a little less in the grocery store. Shave off a bit here and there, and it won't hurt you or make you feel deprived, but you could come up with enough to pay off debts faster without that second job.

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Comments

Jan 1, 2011 7:18pm
divaonline
Good practical advice. I like your perspective!
Jan 7, 2011 10:37pm
bayoulady
I think your best advice in this article is to LOOK at your bills and statements!It is sometimes a shock to look at all those hidden fees!Thumbs up!
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