How to Get Out of Debt Without Going Bankrupt
Do you have sleepless nights worrying about your debt? Do you dread phone calls and knocks on the door. Are you tempted not to open the mail? Are you trying to pretend that nothing is wrong and hiding the situation from those around you? STOP! Hiding from the problem is not going to make it go away. It will only make the problem of being in debt much worse. Read on to find ways to face the problem of debt head on
Admit there is a problem Unless we admit that we have a problem paying the bills and the credit card payments each month then nothing is going to change. It's hard and if you are anything like I was when in this situation you'll say to yourself that its only temporary. That you will find a way around it. That it won't be long before you make more money and can start catching up with the payments. It's not easy but the sooner you can admit that there is a problem the sooner you can make the necessary changes. Not the wishful ones that somehow you'll make more money and the debt will no longer be there.
Take action Wishing and hoping that the problem will go away doesn't solve anything. Only action does. You'll feel so much better when you take action. Your sleep returns. The phone ringing no longer signals panic and the door bell indicates visitors. Become dedicated to taking action. Take a look at where your money is going each month. Are there areas of wasteful spending? Where can you cut back? Go through your expenses and decide which ones you really need and those which you can get along without. Even if it's just for a short period of time.
Be disciplined You must discipline yourself. Getting out of debt is not easy. There is no quick fix. It takes some serious dedication and discipline. Learning to tell yourself NO and stopping yourself from making that purchase is a very hard thing to do. Throw away your credit cards Cut up all high interest credit cards and throw them away. Keep only one lower interest rate card and make the promise to use it only in an emergency. Transfer high interest card balances to a lower interest rate card. This alone could save you hundreds in interest payments over time. Use cash from now on.
My sources: http://crfb.org/simpson-and-bowles-preview-fix-debt-campaign http://ezinearticles.com/?Managing-Your-Debt---How-to-Get-Out-of-Debt-Without-GoingBankrupt&id=7598908