Monthly Archives: June 2010

10 Tips to Get Out of Debt

People suffer from unforeseen factors and events, which can suddenly have debt increase. A job layoff is a good example of how someone can go from being debt free to struggling to pay for groceries. Other individuals might have extraneous spending habits in which poor money management is part of their debt troubles. There are 10 tips we can offer to help you alleviate your debt troubles, including the use of a free payday loan. A free payday loan provides you with the money you need between paychecks, without the interest attached. Often there is still a small processing fee, but as long as you pay the loan off within a certain time frame it is free. It is not the best option, so our 10 tips to alleviate debt should be considered first.

1. Budget your money on a monthly basis. A calendar is a good tool for this since it allows you to see what bills need to be paid when and to put how much. You can also use a spreadsheet to calculate what you need for the month. Any extra income can be saved or sent to your credit cards.

2. Pay the balances on your credit cards that have the highest interest rate, first. If at all possible condense your credit cards down to one payment. However, you should not exceed the 50 percent mark on the credit limit to help your credit scores remain in good standing.

3. Limit yourself on how much you can withdraw from an ATM during the month. For example, you might put a limit of $20 per week for incidentals like eating lunch out at work. Have your paycheck direct deposited also to alleviate the need to get cash when you get your check.

4. Discretionary expenses should be lessened. This means less eating out, not overusing your cell phone, or spending money you do not have on less important items.

5. Try not to borrow money to get out of debt such as consolidation loans. By obtaining another loan you are still not getting rid of the debt, just changing it around.

6. Look at your living situation. Are you renting? Do you have a mortgage, property tax, homeowner’s insurance? You might be able to lessen these burdens in refinancing the mortgage or finding better insurance plans.

7. Instead of using credit cards use cash. Have a credit card only for emergencies such as buying a new fridge because the old one breaks or fixing your car because it has broken down.

8. Look for bargains. Start using coupons again, search the net for better deals, and avoid paying shipping whenever you can.

9. Look for ways to save money such as having a part time job or garage sale to bring in a little extra.

10. Always keep in contact with your creditors to see what deals you might be able to make, especially if they are threatening you with debt collectors. Never let the creditor have the upper hand. Instead, work with them.