Debt management is an ongoing problem in todays world. Capitalism makes people borrow lots of money to live a “decent” life and be respected by others. BUT debt is not a way to go. We shouldn’t spend more than we earn and that is why I decided to write this article. I won’t write about how much you should spend but about how to get out of debt. Consider this a free debt help tour.
First and most important thing, that I already mentioned in the first paragraph is never to spend more than you earn! No matter what you do, no matter what help you’re getting, you will never get out of debt if you keep spending more than you earn.
Second important thing is minimize your interest rates. Credit cards and banks vary from each other and they offer very different interest rates. Now why pay 8% of you debt per year when you can have an interest rate of only 4%?
Another thing is your own personal accounting. Now I am not suggesting you to hire an accountant and pay extra $100 per month for that. Just write down everything you spend! That will help you analyze your spending’s at the end of each month and optimize your way of living.
If everything else fails, you can always join some sort of debt management program (DMP). There are many free ones out there and many online blogs that write about this topic.
Getting out of debt is not easy but it’s not hard either. All you need is will and discipline. Good luck!