Beware of little expenses; a small leak will sink a great ship.
- Benjamin Franklin
Gaining control of the urge to splurge is the first part of digging your way out of debt. The second is taking advantage of ways to lower high-priced interest expenses, such as credit cards, that you may have accumulated over time.
These six steps can help reduce your debt load:
Start today. Begin tracking your expenditures. By keeping a close eye on your purchases, you can determine which are needs versus which are wants. You can then formulate an action plan to reduce unnecessary expenditures and free up money to pay down debt.
Set spending priorities. Make sure you spend to serve your life goals instead of just paying off expenses as they occur. Set aside money first for debt repayment and then budget for things such as saving for college or retirement, before spending on discretionary items.
Leave your credit card at home. Surveys done by Consolidated Credit Counseling Services indicate consumers are likely to spend more using a credit card than when paying in cash. Also, closing credit card accounts can help you resist the desire to overspend by restricting your credit limit.
Pay more than the minimum payment on your loans.Try to negotiate a better deal with your lenders.
- Benjamin Franklin
Gaining control of the urge to splurge is the first part of digging your way out of debt. The second is taking advantage of ways to lower high-priced interest expenses, such as credit cards, that you may have accumulated over time.
These six steps can help reduce your debt load:
Start today. Begin tracking your expenditures. By keeping a close eye on your purchases, you can determine which are needs versus which are wants. You can then formulate an action plan to reduce unnecessary expenditures and free up money to pay down debt.
Set spending priorities. Make sure you spend to serve your life goals instead of just paying off expenses as they occur. Set aside money first for debt repayment and then budget for things such as saving for college or retirement, before spending on discretionary items.
Leave your credit card at home. Surveys done by Consolidated Credit Counseling Services indicate consumers are likely to spend more using a credit card than when paying in cash. Also, closing credit card accounts can help you resist the desire to overspend by restricting your credit limit.
Pay more than the minimum payment on your loans.Try to negotiate a better deal with your lenders.
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