How to Successfully Get Out of Debt In No Time

Getting out of debt requires a shift in mindset but it doesn’t require a debt consolidation firm. Society has indoctrinated us with the concept of instant gratification so most of us have substantial amounts of credit card debt, auto loans, and so forth. In order to get out of debt and remain debt free, we need to revert to the concept of saving up until we can pay cash for what we want. Pretty boring, isn’t it?

However, once you become debt free and are no longer paying exorbitant amounts of interest, late fees, and over-limit fees, it’s an exhilarating experience that isn’t boring at all. You can save or invest the money you used to spend in fees and interest.

If you want to become debt free and stay that way, the first step is to destroy your credit cards so that you can no longer charge on them. Don’t cancel the accounts because that can adversely affect your credit score, just destroy the cards.

Establish a strict budget and commit to honoring it, even if you’re on a very low income. Be sure to include a contingency account because unexpected events will happen; you’ll need to be prepared for them since you’ll no longer have a credit card available. Make sure to include a small account for entertainment, it can help to keep you motivated.

If you elect to keep one credit card available for emergencies, make sure you use it for emergencies only. A new outfit, pair of shoes, or sofa doesn’t qualify as an emergency. A child breaking his or her arm and requiring immediate medical treatment is an emergency.

The next step is to obtain a consolidated credit report and examine it thoroughly. Make sure all the debts on it are valid and then list the debts in the order in which you want to pay them off. Structure your budget accordingly. Sometimes, paying off small balances first can provide you with a feeling of accomplishment and the impetus to continue.

If you have excellent credit and can obtain a new credit card with a zero balance transfer offer, it can put all of your money toward principal balances without paying monthly interest charges. Although it may seem counterintuitive to obtain a new credit card in order to live debt free, it’s actually an excellent method for obtaining an interest-free loan.

Be sure not to charge additional on this card however, it’s for paying off balances only. As a introduction to saving, set up an account for the difference between your former monthly payments and what you’re paying now. It’s amazing how quickly that account will grow.

Forbes provides an excellent article on debt-free living, as does Money Magazine. Other helps for living debt free include:
•Make your own coffee rather than visiting the barista.
•Cook at home rather than eating out; eliminate convenience foods.
•Take your lunch to work rather than buying it, which is healthier also.
•Add one or two trendy items to your wardrobe each season rather than replacing it all.
•Learn to live with one car less than you think you need.
•Shop insurance companies for cheaper rates.
•Eliminate cable and use a streaming device or antenna instead.
•Shop cell phone plans for cheaper alternatives, such as US Mobile.
•Stop smoking and drink alcohol sparingly.

Living debt free doesn’t necessarily mean living a spartan existence. Rather, it means that your money goes for what you want without wasting money on interest charges and fees. It will also save your health because you’ll have less stress, which is a serious impediment to good health. You’ll have more time to spend with family and loved ones because you’ll need to work less.

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