http://www.destroydebt.com/blogs/551662.html Debt www.destroydebt.com Wed, 08 Apr 2009 04:21:13 GMT webmaster@destroydebt.com webmaster@destroydebt.com http://www.destroydebt.com/blogs/551662/1998-getting-out-of-debt.html http://www.destroydebt.com/blogs/551662/1998-getting-out-of-debt.html Wed, 08 Apr 2009 04:21:13 GMT Saving money is so much easier said than done. There's a lot more to it than spending less money and that can be challenging. Well below is some realistic ideas to keep your spending in hand. Well firstly set yourself saving goals. For short -term goals this is easy. If you want to buy a new kettle...
Well firstly set yourself saving goals. For short -term goals this is easy. If you want to buy a new kettle. Find out how much it costs. If you want to buy a house, find out how much down payment you need. For longer- term goals like retirement, you will need to plan ahead and figure out how much money you will need to live in comfort for at least 20 to 30 years. You will also need to figure out how investments could help you achieve your goal. Loose your debts first. Calculating how much you are spending each month on your debts will show you that by getting rid of them is the fastest way to free up money. Once this money is freed up you could start saving it.

Establish a time frame for shorter goals, and make sure the goal is achieved with in that time. If its not attained you will just get discouraged. Find out how much you will have to save each month and keep a record of your expenses. What you save falls into two, how much you make and how much you spend. Since you have control of how much you spend, it is wise to take a serious look at what you are spending. Write it all down for a week or a month. Try not to leave out even the smallest purchase. Keeping a small notebook with you is a good way of recording expenses and receipts.

Take a long hard look after about a month at your spending. You will notice the obvious cuts you need to make like $200 on sweets. Think about your priorities and make cuts you can live with. Calculate the amount these cuts are over a year. Ask yourself: Can I live in a cheaper house, can I refinance my mortgage?
Could I resolidate my debts so I'm not paying as much interest?
Could I save money on gas or live without a car?
Could I drop a land-line and use a cell phone?
Do I really need satellite or cable TV?
Can I cut down my Utility bills?
Can I stop eating out? Could I cook more at home? Cooking at home is a lot cheaper than eating out.

Subtract your expenses from your take home pay. What is the difference? Does it match up to your saving goals. If there's absolutely no way you can fit your savings goals into one budget, maybe you need to put off buying that car or that huge TV. Once you can balance your earnings with your savings goals and your spending, write down how much you have to spend on one given thing and say I only have say £20 dollars a month for it.

STOP using credit cards. Pay for everything with cash. Do not even use a check. Is to easy to over spend as you do noy know exactly how much there is. If you have cash you can easy see your supply running low. If you take your money from a jar you can easily see how much remains. If you do need to carry credit cards. Hide them well away. Credit cards are not evil. Its all about self control. If you use them responsibly you can benefit from them. Remember most credit card companies make money. This is because people are using money they do not have. Opening an interest- making account is the best way to keep track of your savings. You can usually make more interest on saving accounts than checking accounts. Know where your money is at all times, and how much there is too. If you accidentally over draw from your bank account, you'll receive huge fees. Always no when your money goes in and out of a bank.

Have the right attitude. A penny saved is a penny earned. Do not be afraid to be called cheap. Sharing with friends is a good thing to do also. If you can afford to share things like food or living space, try to do so. What comes around goes around between close friends. Soon your friends will be helping you.

Making the right decision and sticking to it. This can be hard as sometimes personal preference means big money. Find out if your an in door or out door person. Some of us like to spend money on cars, some of us on furnishings. Do not try to do both. Decide whats cheaper for you. Cable. Renting DVDs or going to the cinema. Don't get cable or satellite if you are never in. Learn how to get cell phone minutes. Do not buy clothes you all ready have. Find a hobby for yourself. This helps you stop spending money.

If you win or receive extra cash, put all or most of it into a savings account. Continue with your goals, but this may help you reach them sooner. Try thinking over to yourself. The more money I save away. The less I will have to work.

Never go window shopping with money on you, and unless you are about to be evicted with children do not cut corners connected to health. By skipping it will lead to heartache and expensive problems down the road. We could all save money if we just looked more carefully at what we really need to buy each day. ]]> http://www.destroydebt.com/blogs/551662/1997-getting-out-of-debt.html http://www.destroydebt.com/blogs/551662/1997-getting-out-of-debt.html Wed, 08 Apr 2009 04:19:44 GMT I'm working hard to get out of debt. I would tell anyone that is trying to get out of debt is to pay off those credit cards and don't go into any more debt. I am paying off credit card debt right now, and I have a small loan I am paying off. My other debts are hospital bills and doctor and anesthesi...
How does one get out of debt when they have a lot of debts that keep piling up each month? The first thing I would tell you is to communicate with your debtor. Don't blow them off, because they aren't going to go away. I am working on the smaller debts first to get them out of the way. One of my bills is over $3,000; it is a hospital bill. That is the largest bill I have. You might think this is the bill I would attack first, because it is the biggest? No, I am paying them a set amount each month that I decided on. I am paying larger amounts to the smaller debts that I have to get them out of the way to free up that money to be applied to the next smallest debt. I pay the bigger debt enough to stay out of collection.

I contacted the billing department of the hospital and told them my situation. I explained that I was taking care of a few smaller bills to free up that money I could pay them. I asked to work a small payment plan until I freed up the money to pay more. The person on the other end said they could not accept less than $50 a month. I said, I'm sorry, but I don't have $50 to send you each month. The person on the other end tried to strong arm me and say they would have to put the bill into collection, and I said I knew better than that. I would just send them a predetermined amount each month that I can fit in my budget. I am sending them $20 a month, while I send $50 a month to two other creditors. Now, this $20 a month to this creditor is really me just treading water until I can get the smaller bills paid off. My advice to anyone that wants to get out of debt is to:

1. Don't make any new debt 2. Don't live above your means

3. Cook in, rather than eating out 4. Pay your bills on time, and don't make new bills that aren't necessary.

5. Every payday put money aside for emergencies, so that you won't be tempted to use a credit card. While you are trying to get out of debt don't use your credit card at all. Even if you save only $20 a month that will add up over time, and if an emergency should arise, you can then use the money you saved. 6. Prioritize your debt from the least amount to the highest amount. Decide how much you are going to put on each of the debts and stick to your plan. You must be proactive in attacking your debt head on. When the lowest debt is paid off, use the money that was going to the lowest debt and apply it to the next highest debt.

7. Change your spending habits. Look at what you spend each week. If you buy a lunch every day at work, you might consider taking your lunch at least part of the time. If you throw money away on lottery tickets, or other nonessential activities, products or habits, consider stopping and applying that money onto your debt.
I implemented number 7 in my own attack on debt. I recently canceled my cell phone account. It was month to month, because my contract had expired a couple of years ago. It didn't make sense that I was paying $60 a month for a cell phone when I had a land line phone at home. I do have a cell phone that I share minutes with my family at no charge to me. I don't use it except to contact my family using the mobile to mobile feature, which is free. Now I am able to apply the money I spent on my cell phone to the debt that I am paying off.

I changed how I buy groceries to save money. Instead of buying a lot of boxed items and convenience foods, I go more for cooking from scratch. I have saved more than $100 this month. It normally costs somewhere around $400 a month to buy for my family. This not only includes food, but also non-food items such as laundry soap, dish soap, deodorant and so forth. If you are drowning in debt, make an assessment of what you can change. There is no need to just throw up your hands and give up. You must have a plan and stick to it. You know how you check a tire to see if you have any air leaks? Well check your spending habits, and bill paying habits. Find out where the leaks are and stop them before you lose everything you have worked so hard for. ]]>