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Debt Relief: A Common Sense Approach

April 09, 2012 | Comments: 0 | Views: 184

If you are reading this article then I am assuming that you are having some problems with debt that you have already incurred or you want to find a way to curb your spending so you don't run into any future problems. The information that I am going to go over with you here is a common sense approach to dealing with your debt as well as ideas on what you can do in order to curb your spending so you don't put yourself further behind. I believe that if you take the time to digest some of the ideas and suggestions that you will read about, it can provide you some direction on how to better take care of your financial issues and help put some money away that you have been spending. So let's see if we can give you some ideas that make sense and that you can immediately start using.

First of all, let's talk about where your debt is coming from. If you are like most people, the biggest debt trap you can fall into is with credit cards. Banks are in business to make money and part of the way they make money is by giving out loans which is essentially what a credit card is. Unfortunately, most people don't pay off their balances each month and start growing sizeable sums that begin drawing interest which further ads on to the amount owed. The problem is that many people that are being given credit cards are really not in a position to use them responsibly but the allure of having extra money when they need it is just too hard to back away from. Thus, debt begins pilling up. Here are a few common sense things that you need to be thinking about if you are having a problem managing your credit card debt. First and foremost, stop using your credit card if you cannot make any more than the minimum payments each month or, the minimum payment is so high that you cannot make that payment. Making just minimum payments will end up taking you years to pay off your credit card due to the interest that will be added on. This is not the banks fault! Remember they are in business to make money like every other business in the world. This is YOU not paying attention to what you can afford to spend. Sorry to have to say that but it is the reality of the situation. It does not mean you are a bad person it just means that you made some mistakes with your money and now have to recognize that some changes have to be made in order to correct the mistake. Once again, the biggest challenge you have to get past is to STOP using your credit card(s) until you have the balances to levels that you can pay more than the minimum amount each month or pay the balance off.

Secondly, if you do get behind on your credit cards to the point that you can't seem to make the minimum monthly payments, DO NOT let a bill go by without paying it. Call your creditor and talk to them about the problem you have run into. I accept that this is an uncomfortable phone call to be making but most all of the banks or other creditors that give you credit, WANT YOUR BUSINESS so they are going to try to find a way to keep you a happy customer instead of alienating you by being rude or aggressive when you are explaining your problem. They are there to help you and find a way to work with your problem so that you are a lifelong customer. In most cases, they will go over what issues you currently have and provide some suggestions on what the creditor they work for will be willing to do to help you. However, if you don't make that call, they can't help.

Thirdly, do you have a budget that you keep up with each month to ensure that you don't overspend? Here is one of the best common sense ideas that I can give you and if you will take time to do this, it will open your eyes as to where your money is going and how easy it can be to save some more. Get a pocket spiral note pad to keep with you were ever you go. Then start notating every penny that you spend each day. If you stop at a convenience store in the morning to get a cup of coffee, write that down. If you go out to lunch, write what the total amount was that you spent. If you go to a vending machine at work or somewhere else, write down what you spend. Make sure that you write down the amount and what you spent the money on. Do this for thirty days and I assure you that you will find that there is money you are spending that you do not have to spend that could easily become part of your savings account or just remain in your bank account so you can pay your bills. I think you will be amazed at how much money is basically "thrown away" each week or month that if you took time to prepare a little before you left for your day, you would be able to save that money for something more important like paying your debt.

I hope these ideas will be able to help you think about some ways that you can help yourself get out of debt and start putting some of your hard earned money back in YOUR pockets.

Source: EzineArticles
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