Getting Out of Debt Part 2

Being in debt is a horrible feeling, but it’s a problem many people face. Some have an excuse – they were laid off, have medical bills, or are facing hard times beyond their control. Others don’t – the vast majority of debt comes from poor spending habits and the inability to accurately predict future finances. If you do find yourself in debt, here are some easy to follow tips to help you dig your way out of the hole.

Create a budget – This is the most important thing one can do to control spending. Create a list of all of your living expenses. Be sure to put away some of the remaining money -- you’ll need it when your car breaks down, or some unexpected expense comes up. Don’t resort to the credit card! Be responsible with your money.

Use cash instead of credit – This is one that can save you hundreds upon hundreds of dollars. Credit cards give you the mentality that you can always pay it off when your paycheck comes, but this usually leads to spending above your self-imposed limit. Store the credit card somewhere safe, and only use it when absolutely necessary.

Be smart while shopping – Have some extra time in the afternoons? Start cutting coupons! Being a smart shopper and tracking down deals can help you out greatly, and the extra money you’re saving can be put towards paying off your debt.

Consider downsizing your home – Really take a look at your living situation. Sure, a big house and swimming pool are nice amenities, but do you really need them? Is it worth having debt collectors call your house daily in order to get sun on Saturdays? This is a huge money saver, so really evaluate your situation in this regard. Moving into a smaller place for even a few years can open up enormous amounts of additional funding for you, which can be used to pay off your debt.

These are just a few money saving and debt eliminating tips. Use these things along with common sense, and really take a look at what you’re spending. Take a look at your credit card statement and you’ll realize how much you spend at Starbucks, McDonald’s, etc. Take control of your finances! Be strict with yourself, and you’ll slowly see your debt start to shrink, and in return will feel like a new person!