How to Pay Down Debt - Live Within Your Means
By John Hurley
Do you know how to pay down debt? After years of "irrational exuberance" the day of recognizing is at hand. We no longer have huge stock portfolios or ever appreciating homes to borrow against. Instead, we are worried about whether our jobs will even be around next month.
As a result, people are retrenching and trying to pay off their obligations rather than rack up new ones.
The best way to pay down debt is to live below your means and spend the remainder on your monthly obligations. Here are 7 tips for that:
• Decide that shopping is not "entertainment" and stay away from the stores unless you have a specific item to buy.
• Always buy with cash. Cut up all but one credit card. It feels more like "real money" when you are spending cash.
• When you find a better deal, save the difference.
• Work to stay healthy because medical bills (even if you are insured) are expensive.
• Find ways to give without spending any money. Not all holiday and birthday gifts have to be expensive. Remember the old adage "it's the thought that counts."
• Never pay retail. Always look for discounts.
• Stop competing with the Joneses. You'll never keep up. Enjoy what you can afford.
For some people, even living cheaply won't keep them within their means. In this case, you should contact a debt consolidator who can help you work out a payment plan with your creditors. This generally means that you will have lower monthly payments as the principle and interest have been reduced and you are paying over a longer period of time.
So, those are two solutions for how to pay down debt.
If you have fallen into the trap of easy credit, and found yourself over your head in debt, there is help! Go to http://www.helpfordebt.org to reach out to organizations that can assist you in reducing your debt - sometimes up to 50%. You will learn to make - and stick to - a budget and they will help to negotiate your credit card and other bills down.
You are not alone. Many other people who were in exactly the same circumstances as you are have found relief through the programs offered through http://www.helpfordebt.org
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