Getting out from debt- Part I
It is practically not easy to getting out of debt and staying out of it but you can keep control or can stop incurring new debt and that can change your way of life, I think this can help you somewhat getting out from debt, check it out;
* If you have credit card, try to cut them in half and also cut up any convenience cards that you have such as gas cards, dinner club card, petrol card or department store cards etc, try to use only one card and keep control on buying thereon.
* You should also keep record on your spending though it seems annoying for few people to keep all records of spending but it can be key for getting you out from debt. Try to be realistic, the main reason you are in debt because you spent money actually that you didn’t have.
The main reason to keep record and categorize your spending is to make a budget to keep control on your spending, this will enable you to analyze the expenses that you really don’t need for example; you are paying a gym membership but you never use or and you are incurring expenses for magazine subscription but you have no time to read it.
* You need to categorize your spending, your monthly expenses logically, for example categorize it in “must have”, “should have “and “like to have”. The food, rent, medicine could be considered in must have and so on should have are the things that you can live without it for some period such as new cloth, spa membership etc and like to have are things that just enhance your life style like specific magazine subscription, club membership, organizing party for your friends for special events, expenses incurred on video game, pub, dining out etc. If you are in debt try to eliminate both “should have: and “like to have” things.
To be continued in next post..
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