Thursday, May 28, 2009

DEBT got you.... DOWN

Debt reduction is not always an easy process - especially when you’re first starting out. Maybe you have a car loan that just can’t be shaken. Perhaps you have a mortgage that you think you’ll be comfortable paying for the next thirty years.

If you feel can’t get yourself to start the debt reduction process, you need to take some small steps toward building momentum today. Once you get that momentum, your task won’t seem so difficult - it’ll just be a normal part of your routine.

What small steps should you take?
  • Gather three months of expenditures to analyze your spending habits. By taking three months and averaging your expenditures, you will have effectively seen where you money naturally goes. Don’t have your old receipts? No problem! Just start today and in a few months (not that long from now) you’ll have the ammo to cut back unnecessary expenditures!
  • Keep a little card in your wallet by your cash that says, “Should I really be buying this?” This frugality card will serve as a constant reminder to think before you hand over your cash.
  • Find someone who can keep you accountable to the goals you’ve set out for yourself!
  • Use the envelope budgeting system. In our credit-infested world, it can be difficult at first to spend cash for variable expenses such as groceries and entertainment. However, spending cash is a very visual process that can curb overspending - which ensures you’ll have some money left over at the end of the month to throw at your debt.
  • Try something brand new. If your job has gotten you down and not bringing in much money, why not try something new? You know that side hobby you enjoy during your free time? Why not turn that into a business! It just might be the extra income you need in order to knock out that pesky credit card debt!
There’s no need to go to a debt reduction agency. If you want to eliminate your debt, you must create the momentum to do so yourself. Attack the root of your problem and don’t try silly shortcuts. You’ll feel uplifted when you pay off your first loan. You’ll feel better and have more peace of mind.

Are you ready to knock out debt? Need a friend to help? Ask Pastor Steve about "The Christian's Guide to Financial Freedom".

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