Wealth-Coaching

Digging your way out of debt is difficult.  We all know just how hard having more debt than income is a bad position, but it’s one of those places that’s easy to get to and hard to get out of…

Reducing your debt a little at a time makes sense:

• Stop borrowing. It might seem obvious, but if you’re charging just a little bit more than you can pay here and there, you’ll find that those expenses add up. If you’re having trouble managing your credit card spending, consider cutting up your cards and only paying for things with cash, check, or debit card. Some Fools suggest putting your cards in a bag of water and popping them in the freezer. When you’re tempted to use them, you’ll have to wait until they thaw, giving you time to rethink your urge.
• Consolidate your debt under a more favorable interest rate. Depending on your circumstances, you might be able to get a bank loan to pay off your credit cards and other debt. Or you might roll your credit card debt from various cards onto a single, more favorable card.
• Allocate as much money as you can to paying down your debt. You could raise some extra funds by holding a garage sale. Or, in these electronic times, you might sell your old lunch boxes, woks, books, and CDs at sites such as Amazon.com, eBay, or eBay’s subsidiary, Half.com.

You CAN reduce your debt, but it’s not going to be fun.  You must make a plan and stick to it. 

Slow down your spending and stop eating out as well, especially if you are putting meals on credit cards.

If you can’t pay it off at the end of the month, you need to save for it.  It’s that simple!