Debt Recovery
OK, so you are up to your head in debt. You are stressed out,
it is now affecting the way you function and absorbing most of
your daily thoughts. You have no idea what to do.
OK, first things first. Take a step back and try and look at
things with a clear head. Your debt recovery is manageable. If you have
many bills and just can't afford them all, the first thing you
should consider is a debt consolidation loan.
A debt consolidation loan will help you out by consolidating
all of your debt into one monthly payment that you can afford.
Second of all, figure out what is an affordable amount of
money, that you can afford to pay monthly. You want this to be a
fair amount of cash, however you still need to account for some
money for yourself to prevent yourself from slipping further
into debt.
The next step is to cut up your current credit cards. I know
I've fallen into this trap on numerous occasions; I didn't cut
up my credit cards and planned to use them for 'EMERGENCY ONLY'.
Well, a few months roll by, and that new shirt, and that tank of
gas add up to ANOTHER full credit card. If you no longer have
credit cards, you can't be tempted to use them.
Finally, you need to correct the problem by killing it at the
root. Start saving 5-10% of your income and start saving to
purchase those things you want or need. The immediate
gratification of making a purchase will wind up haunting you in
the long run. Rationalize every purchase and try to take into
consideration if this purchase is a rational one or one based on
emotion. If it is based on emotion, think about how purchasing
this item will make you feel, then imagine the stress of being
in debt. If you managed to make your way out of debt at least
once in your life, I'm sure your urge to purchase this item will
quickly fade.
Follow this simple outline, and your journey to become debt
free will be under way.
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