FIVE TIPS ON HOW TO REDUCE YOUR DEBT IN A WEAK ECONOMY
FIVE TIPS ON HOW TO REDUCE YOUR DEBT IN A WEAK ECONOMY
Many Americans struggling with credit card debt don’t have a clue how to put themselves back on financially sound ground, especially during a recession. While businesses are cutting back work weeks and giving employees unpaid days off, in effect reducing their pay checks, employees are left with their unchanged monthly expenses, not knowing how or where they’re going to find the money to pay their bills.
If you are among the 77% of America with an average of $6,000.00 dollars or more in credit card debt on various accounts, struggling to just make your minimum payment due, simply going on a budget may not be a solution for you. You may need the assistance of a credit counseling service in order to resolve your financial problems.
Reputable credit counseling services are available and offer a variety of services that can assist you in determining precisely where you stand financially and exactly what steps you will need to take to resolve your debt management; whether it be as simple as debt management or as complex as debt consolidation or debt negotiation all the way to debt settlement. A professional debt counselor will assist you in determining exactly what resolution is appropriate for your particular credit situation.
Another way to manage your debt problems is pre-emptive debt management, which is, to take a long hard look at your budget and determine to make the necessary adjustments in your lifestyle to accommodate your shrinking income and expanding expenditures; simply said reducing your monthly bills.
Here are five ways you can try to reduce you debts, earnestly try to incorporate these steps into your spending habits. If you find that this isn’t enough to remedy your debt situation you should consider seeking a reputable professionals help.
- Gather all your (2 months) most recent credit card statements (including gas and department stores) and line by line analyze each statement looking for recurring charges, that is charges that appear there each month i.e.; gas, dry-cleaning, gym membership, etc. and make a list of each category.
- Prioritize that list into two categories; the necessary (must have) and the unnecessary (like to have). Establish what is necessary even though it may be discretionary type spending, such as tutoring vs. ballet lessons; determine what is not up for budget cuts.
- Honestly look at your list and determine which expenses are essential to your existence and which are wasteful or could be reduced i.e. $110.00/month cell phone bill with internet and e-mail service; consider reducing the type services or doing away with an expense all together where it’s not essential.
- Be a bargain spender; shop around for better prices on things like gas, dry-cleaning, buy generic brands where possible including food and clothing, try to reduce the amount you pay for the things you must buy.
- Determine which of your credit cards you use the most (largest expense) and what stores and make them off limits for 10 straight days; the idea is to gradually wean yourself from destructive spending habits.