How To Clear away your DebT, QuiCkly
To get your debt under control, there are a few steps you can take that will help you to start to reduce the money you owe and invest what you earn. Avoid Interest If you can't transfer high interest debt, you can sort your spreadsheet by interest from highest to lowest and bump up the payments on the highest interest debt so you can wipe out that principal and reduce your total interest paid. If high interest debts are out of control and you don't see a way to catch up, consider visiting a local credit union to see if you can get some help with credit counselling. Credit unions have educational programs that you can use to manage high interest debts, get some help building up savings, and get help dealing with creditors who refuse to work with you directly. Do a Short Term No-Spend
A no-spend is just that. Unless you absolutely need to spend, you don't. The no-spend mindset will take some time to build up to, especially if you are trying to bring your family in on the process. Inventory Your Pantry Go through your cupboards and look for what you don't need to buy for a while. This can include foodstuffs such as • pasta • rice • canned goods • spices • dried beans You may have a freezer; if so, create a list of what you have in reserve so you can use it up before it develops freezer burn. Make sure you also go through the bathroom cabinet, linen cupboards, and other storage. Get a count on your extra • shampoo • body wash • lotion • deodorant • toothpaste Functionally, what you want is a detailed awareness of the consumables currently in your home that you can rely on without having to shop for more. Start with a Freekend Your first foray into the no-spend mindset can start with a freekend. Review your inventory and study the grocery store flyer to see what
fresh products, dairy and meat are on sale. Plan your meals through supper on Monday and shop on Thursday night to prepare for those meals. Connect with your family members and invite them to plan free activities to do from Friday morning through Monday night. Have a movie night on Friday, then plan a picnic on Saturday. Look for free museums or plan a trip to the library on Saturday if the weather will be unhelpful. By Monday evening, your bank account will have been given some breathing space. You will probably need to do some shopping. Make a list and stick to it to avoid over-buying. Plan a 10-Day No-Spend A 10-day no-spend will actually be much quicker to plan than the freekend because you will have both experience and a bit more cash. Check sale flyers. If you need shampoo, buy one bottle. There are many people who find that, after going through their pantry and stocked up cabinets, they may not need to buy some cleaners or personal care items for a year. Avoid Seeing Shopping as Fun Shopping is not entertainment. Shopping is a means to an end, and the end result should be leaving the store with what you need and no more. With a dedicated no-spend, you can redefine your sense of fun. You will have better control of what comes into your home and a better understanding of what you are storing. Build Emergency Savings If you have gotten used to being broke, having money in savings can actually make you nervous. Don't worry. Disposable income won't spoil. If it really bothers you, consider setting up a savings account at a local bank or credit union. Do not get a debit card or even set up a
checking account on that account. Make it very hard to get money out of that account. Having an emergency savings account means that an accident isn't a catastrophe. Start by saving up enough to cover a week's worth of groceries. Once you get that put away, save up enough to cover a car payment. If your car is paid off, save enough to cover one month of rent. The idea of saving up six months of living expenses will look impossible when you are living check to check. Start with your grocery expenses, then work your way up to more savings. Before jumping into any of these methods, you can talk to a financial advisor in Central Coast to find out your best options and they can help you formulate a tailored plan to get you out of debt.
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