Make 2014 the Year You Get Out of Debt

| February 5, 2014

It is much easier to accrue debt than it is to get out of debt. Debt is not just a problem for people who spend recklessly and have no financial knowledge.

Even financially savvy consumers can get into debt when life’s circumstances become overwhelming due to job loss, sickness, pay cuts or other situations.

If you are dealing with debt, you understand the stress and frustration that comes with owing too much money. Many people have tried unsuccessfully to get out of debt in the past. However, that does not mean that your situation is hopeless. Apply these tips to make 2014 the year that you get out of debt and enjoy financial freedom.

Realize Your Debt Total

One of the biggest things that holds people back from getting out of debt is the fact that they do not want to face the reality of their situations. It can be very scary to realize exactly how much money you owe, but realizing your debt total is the first step to getting out of debt.

If you are not sure how much money you owe, take some time to compile all of your bills, credit card statements and other documents. Plug the information into a spreadsheet, and add up the numbers to get your true debt total.

Minimize Spending

Once you know exactly how much you owe, you can start taking action to reduce that number as quickly as possible. You can’t pay off your debt overnight, but you can do everything possible to keep your amount of debt from continuing to grow.

Take a hard look at your spending habits, and stop paying for anything that is non-essential. If cutting spending is hard for you, remember that these drastic changes do not have to all be permanent. You might not be able to afford your favorite coffee every morning when you are trying to get out of debt, but you can include an eating out category in your budget once you have crawled out of the debt hole.

Increase Your Income

You can only cut your spending so far without affecting your quality of life. No matter how far in debt you are, you still need food, water, a safe place to live and other necessities. Once you have cut your spending, you can take your debt payoff to the next level by increasing your income. If you are already working a full time job, you might think that it is impossible to fit income-producing activities into your already busy schedule. Could you babysit a couple of extra children on the weekend so their parents can enjoy a date night? Can you participate in paid online surveys or focus groups while you are relaxing in the evenings?

Some creative consumers earn money from home through Forex trading. There are many online brokers that allow you to participate in the trading process without ever leaving your couch. To increase your chance of success, it is vital to work with reputable brokers. The following brokers have earned a reputation for honesty and quality:

Watch your debt payoff amount decrease by applying the money that you make through Forex trading directly to your debt.

Category: Debt

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