Payday has come and gone, and once again you’re scratching your head wondering where the money went. Poof! It seems to disappear as fast as you get it. At the end of the year, it’s even harder to remember where the money went. Millions of Americans are living paycheck to paycheck.
If you’re thinking about your best debt management solutions, now might be a good time to really think about how much money you’re spending. The following debt management tips are designed to make you aware of where you’re spending your money. When you can see in black and white where those dollars are disappearing, it’s easier to come up with a smart debt management solution that works for you.
1. Keep track of every cent you spend for one month. Yes, it’s a lot of work, but you only need to do it for about a month. That means keeping track of every cent including the money you spend on all of those little extras like gum, magazines, newspapers, coffee, donations, gas, etc. Don’t forget to include the big stuff like mortgages and car payments. Keep this list accessible and on your person if possible.
2. Immediately stop using your credit card for everyday purchases. Shopping online? Look for shops that offer the eBillme option where you can pay direct with cash through your bank account. The Debt-Free Mall is one place you can shop where you can choose from thousands of different products and never need your credit card.
3. Your bank can help you get a personal line of credit as a way to consolidate your debt and better approach your debt management issues. They typically have lower interest rates than other loans. You can use them to pay off your high interest rate credit cards and then work towards staying out of credit card debt going forward.
4. Find a debt counselor or debt management company. Some of these don’t even charge for their services – see if you can find a free one. They can look at your personal situation and try to figure out the best approach for you.
These are just a few ideas to get you started. Remember, it can feel overwhelming to be in debt, but you can take steps to get out of it. It takes strength and courage to ask for help when you need it, but debt counselors spend all day helping people in exactly the same spot as you are – they know what to do and can often be very helpful very fast.
