This title could almost be a website on its own, so I will need to condense how to destroy your debt into just a few subjects, though I suppose that we could consider this to be part one, however we will leave that for another occasion.
Unfortunately we cannot just destroy our debt by tearing up the bank statement that says overdrawn on it, or you have exceeded your overdraft, or by destroying our credit cards by cutting them up and forgetting that they exist, or the dreaded letter from the Bank, asking you to spare five minutes to see the manager, which we deny receiving, if only!!.
It takes a lot of will power and strength to effectively destroy the debt that we have built up, I suppose that the first thing that must be considered is how did the debt occur?
- Is it spiraling out of control, so that you are seriously struggling with what you owe? More importantly how are you going to pay it back without losing the house or car!
- Did it occur because you failed to keep your eye on what you were spending?
- Were you or are you living beyond your means?
- Loss of income but carried on spending?
- Just enjoy flashing your debit or credit card, then get a shock when the restaurant manager says sorry can you come into the office, really embarrassing if you’re treating someone to a special meal.
The above are just some of the reasons that you find yourself needing to destroy your debt.
Do you plan your weekly or monthly budget. if you are finding yourself constantly overdrawn at the bank, or having insufficient funds to meet your usual bills, then it might be time to work out just what you do need to buy on a weekly or monthly basis.
You will need to write down just what you are spending each pay period, and then be brutal and see if you can do without some of the items, remember household bills, such as rent/mortgage, utilities and council tax are very important to ensure that you can keep your head above water. Going for a pint or out to the cinema are not.
When we lost all our money due to being scammed, one of the first things that we did, was to analyze our bank statements, non-essential direct debits and similar items were stopped. My wife worked out how much she could manage on a week, and her allowance was reduced, I did the same, sometimes living on last weeks left over bits of cash, my attitude was simple, if my wife could cut down so could I.
Something that I read a few years ago suggested that instead of going shopping on say a Monday every week, add a day but do not increase the bill. Simply put, you survive for an extra day on the same shopping and the same bill. This way every seven weeks you have saved a weeks shopping bill, this can go to paying off some of your debts! It is certainly a different idea.
Another way to save on your shopping bill is to use the vouchers that offer so much off, you can search for these online, BUT only use them for the items that you have on your shopping list, otherwise you will get into deeper debt.
Have done a little infographic to show what I consider to be essential and those items which are not really needed, in other words luxury or non-essential items.
Stop Credit Card Disaster
It is so easy to get into a mess with your credit card, you just think oh! I like that and out comes the credit card, before you know what has happened you get a letter or text telling you that you are maxed out.
Until we lost the money, if I did use the credit card, it would be because I did not have enough cash on me, even so I paid off the entire balance each month.
Now I have had to use the cards to enable us to live, with just a small repayment monthly, however as things are starting to improve try not to use them at all. Have also read a good tip that said if your minimum payment is say £50, then repay £100, it is surprising just how quickly the debt will go down. This is assuming that you can afford to do this, but a little extra would go a long way to helping as you would not have interest to pay on the extra that you have paid off.
Providing of course you do not keep adding to the bill!
Try it and see.
Control Debt with Better Money Management
This follows on from the previous section in being careful how you manage your money.
It is so easy when shopping to be tempted with those two for one offers and buy one get one free. These are great if you need what is on offer, if not, do not be tempted, they are adding to the bill and of course the debt which you have, so think very carefully when out shopping you do have to be very hard with yourself, no matter how tempting things appear to be.
A simple idea – stick to what is on the list
If you can afford to go out for the odd drink, be wary, it is so easy to get yourself in a round, which if you have a debt problem you just cannot afford. At one time I would go out on a Saturday night, friends and family would be there, we always bought a round in turn. When I got home one night it dawned on me, I was on my own buying other peoples’s wive’s drinks and spending twice as much as I would have done had I been on my own.
Guess what I no longer go out on a Saturday night, call me tight-fisted or mean, I do not care, I call it being sensible, or not spending money which I have not really got.
Do you have a car? If so is it really needed for every journey that you do? Think first before driving somewhere when you could walk or if you have a bus pass catch the bus. You will be surprised how much money you will save in not buying petrol so often. If you can walk the fresh air will do you good as will the exercise.
The Mindset of Millionaires
Have you ever thought about the way millionaires think? They ensure that they mix with people of a similar ilk, not all of them were born rich, many are self-made. They think in a very defined way, they are rich, they have made themselves rich, usually by hard work, and guess what they intend to stay rich.
Mixing with those that are less successful could drag them down, they cannot and will not let that happen. The reverse effect can work if you apply yourself in the right manner. You need to have the positive mindset that says to yourself, I will succeed, I will earn mega bucks. Doing this as often as you can impress it on your mind and mixing with those who are of that frame, can set you on the path of not only good fortune, but riches as well.
As always do so hope that you enjoyed this article, if you have a money problem that some of the ideas may be of use. Please leave your comments in the box below, your feedback is very much appreciated as is the time that you take in making them.
The next article will be “What you should avoid”
Stay Happy, Healthy and Wealthy.
Stuart (aka Edwin)