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How to Reduce Your Total Debt

By Edited Jun 22, 2015 0 0

Want to know how to reduce your total debt?  It is difficult in this economic climate to find debt relief when things cost so much but in this article you’ll find some helpful debt advice and debt management solutions that will help you reduce your overall debt and get back on track in your life. Once you have debt you need to work hard at finding debt relief so you can take back control and start living a normal life.

Financial Budget

One of the first things you need to do to reduce or eliminate your debt is to create a financial budget. Your budget will list all your expenses and the amounts you pay each month for everything. When you create a budget you’ll be better able to see areas in your life where you can cut back and direct those funds towards debt management and your final debt relief.  Too often we mismanage our money and buy things we just can’t afford. With a budget you’ll know where your money is going and just how much you have that is available for your debt problems. Try to be as accurate as possible with your budget and every time you spend money put those expenses into your budget right down to the last penny. This will make things so much easier when it comes to making payments on your most critical debt problems. Financial planning and budgeting play a key role in that final debt relief you need.

Small Expenses Add Up

How many times have you stopped off before work to buy a quick breakfast? Do you buy a daily newspaper? Is stopping off at the corner store a regular part of your day? Too often we don’t think much of “little expenses” such as coffee or a quick snack but these can add up over a course of a month and that money would be better suited towards paying off your debts.  Pack lunches and don’t be tempted to eat out when you really can’t afford it. If you do eat out, see if other people don’t mind splitting the bill with you. Say you buy a newspaper everyday since it’s habit. Yo9uc na go online and get all the news you need and major newspapers have their own websites which often feature additional stories videos and other content you don’t get from the print publication. A newspaper or magazine seems small but these are other areas where just simple adjustments can help you eliminate your consumer debt.

Shop Smart

Make full use of the flyers that come out for major supermarkets and other stores such as Wal-Mart. You can save quite a bit of money if you only shop when things go on sale. Buy extra when the sale is on so you won’t have to spend next month. For food you can switch to staple items such as potatoes, dried beans, bags of rice, oatmeal, carrots, onions, and other simpler foods that don’t cost a whole lot. You can save a ton on meat by investing in a slow cooker and tenderizing cheaper cuts of meat into a great meal for lower cost. Dollar stores often have tins of salmon, tuna, sardines, and other fish products for cheap prices. Make it a habit to “only buy on sale” unless you really need the item and it’s an emergency.  Resist the urge to compulsive shop and buy things that you don’t need. It’s an easy trap when there’s so much section out there, you almost feel compelled to buy something.

Coupons

Another way to save a ton is to use coupons. There’s a reason couponing is becoming so popular, it’s the savings offered by companies on their products through coupons. Many companies offer coupons and you should take advantage of them when possible. You don’t have to be a fanatic like some of those extreme coupon people because you’ll never use 100 jars of spaghetti sauce before it goes bad. Make coupons a part of your life and use those savings to help you reduce your debt. Many places online offer coupons you can have mailed to you or have them printed out on your computer.

Clothing

There’s nothing wrong with second hand clothing for the most part.  You can get some great second hand clothes if you know where to look. This is a good option if you have growing children because they go through clothes faster than you can turn around and outgrow them so quickly. Garage sales, flea markets, and economy stores are all fine places to look for second hand clothes or clothing at reduced prices.

Furniture and Other Household Expenses

Make use of those big sales on large purchases. Plan ahead for things you absolutely need but don’t buy anything unless you do. Maybe your couch can last another six months before falling apart.  You can listen to much on the Internet so that new stereo system might not be a great purchase if you’re in debt. Try to buy things in full and eliminate the obscene interest payments you have to make on many larger goods such as furniture or appliances. Save up, pay in full and avoid the headaches.

Odd Jobs

There are many ways to make extra income to pay down your debt. There are sites online that offer small jobs for a small amount of money such as Fivver. This might seem like a small amount but if you can do the jobs quickly this can add up enough to pay that last debt bill for the month.  Other jobs include article writing, taking surveys, and blogging. Put of advertisements around your neighborhood and offer your services for any odd job that you think you can do.

Financial Assistance

If all else fails consider talking to a financial planner and see if there are ways you can get your debt consolidated with smaller monthly payments. It can’t hurt to try this option and you might just pay off your debts sooner.

You Can Reduce Your Total Debt

Having debt isn’t fun but by being smart about it you can finally get those bills paid off. Try to budget your money and only buy what you truly need. We can all live with less and get by just fine.  Reduce your total debt today and start towards the path to final financial freedom.

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