A Collection of Resources Related to Debt Reduction Strategies
When you’re in debt, you can’t do the things you love; you can’t drop everything and start something new. You need to keep making those payments weekly or month after month. It’s a never-ending cycle that can consume your whole life as you are forced to work and pay off debt.
Some people have spent their entire lives going to work day after day, just making ends meet. They are unable to enjoy their lives; instead, they live to work and work to pay off debt with no end in sight.
Debt Is A Normal Way of Life
Payment plans allow us to purchase big-ticket items. Without these options in place, people wouldn’t be able to buy homes or cars. How many people do you know that pay cash for their brand-new cars or their home? Sure, there are some, but most people have payment plans.
Spending stimulates the economy, creates jobs, and keeps money in circulation. If people spent less and purchased only the necessities of life, then our economy wouldn’t be what it is today. It’s the spending that keeps the economy healthy.
Credit cards can be a lifesaver in absolute emergencies, but that’s it, avoid them.
The problem with using credit cards is they allow you to make impulse purchases because there is a set credit limit you can use, just sitting there. You don’t have to ask your banker for the loan; you pull out the card, and the money is readily available. So, instead of thinking this is a loan, you think, ” How much room do I have left on my credit card? ” ” Okay, I have enough; I can make this purchase, no problem. ”
Living with debt is typical in North America. Do you have $6,800 in credit card debt? Well, that’s no big deal; that’s average. A rough calculation for interest alone is around $1,300 a year, averaging about $109 monthly.
If you’re paying the minimum, most of the money goes towards interest. Now, what if you have four or five cards with that balance? You’re now paying over $400 monthly in interest with only a tiny amount towards paying off the balance. At that rate, it will take years to pay off your credit card debt.
Consider the above payments and add the mortgage, car payments, and other loans, and you’ll find most of your income is going toward interest.
Is it worth it?
Remember all the fancy items you purchased on credit? I’m not judging because I have been there, and it’s the worst thing ever. There is no way out if you’re on a fixed income. You must either consolidate your debt, eliminate all credit card debt and/or make more money to start reversing the debt process.
Debt Is Like Having A Bad Boss
Think of it this way: your financial debt is like having a bad boss who doesn’t interact with you and only has demands you must fulfill. You can’t do anything you want unless your boss allows it, and he never does. Your boss is strict, unforgiving, and has no tolerance for delay. You don’t matter to him; you are just a number.
Living with debt keeps you from changing your life, taking a different career path, improving your education, investing in an opportunity, or simply taking a break. It keeps you where you’re at and gives you zero tolerance for change. The only option is more debt. Have you ever taken a cash advance on one card to make a payment on another card?
Who would want to live like that? Yet many of us do because we think this is normal, don’t have a choice, or are unsure what to do.
There are steps you can take to get out of debt.
First and foremost, you need to want to get out of debt and work with the right people who can help you achieve debt-free living.
- Get a consolidation loan to pay off all your credit cards.
- Cancel all your cards except for one with a low-credit limit used only for emergencies or for situations like hotel rooms and car rentals that require a credit card.
- Get on a budget.
- Take a vow to never, ever live above your means again.
The above is easier said than done, and you may need professional help to get you on the right track, but going through some discomfort now will allow you to live a better life.
In the following resources, you’ll find an abundance of resources that will help you get out of debt and stay that way. Take some time to go through the sections to find the articles that interest you the most.
How to Pay off Your Credit Card Debt
Credit card debt is one of the most expensive types of debt to carry; they have high-interest rates and should only be used for emergencies.
If you have a lot of credit card debt, then this is something you want to eliminate as soon as possible. It’s time for a change, and the resources below will get you started and inform you of what steps and options you have. Take a look at the collection of articles below that can help you get back on track with your finances.
Tips to Pay Off Credit Card Debt Fast
How to Pay Off Credit Card Debt | US News
5 Ways To Pay Off Credit Card Debt Faster
How to Pay Off Credit Card Debt Fast | Credit Karma
Simple Debt-Free Living
Living above your means is what gets you in trouble, racks up those credit card charges, and keeps you working without saving. You’ll be happier with less when you figure out how to live a debt-free life.
Think about it. How much stuff have you purchased on credit? How much did you pay for it? If you sold it all today, would you get your money back? Would you get half your money back? Would you even get a quarter of it back?
Another consideration: With all that stuff, are you happier?
You can still be happy with less. The resources below offer tips and insights about avoiding a life of spiraling debt.
Look to see what your life would be like if you were debt-free.
Debt-Free Living – Simple Living Daily
7 Characteristics of Debt-Free Living | DaveRamsey.com
4 Simple Steps For Living A Debt Free Life | Frugality Magazine
How to Increase Your Income
Another way to reduce your debt is to increase your income and use that money to pay off your debt.
A good debt reduction plan and increased earnings will improve your financial situation. Once you focus on your finances, you’ll develop better spending habits.
Try the resources below that can help you increase your income. Even a 5% boost is useful.
12 Ways to Increase Your Income This Month
10 Ways to Increase Your Annual Income
5 Ways to Increase Your Income
18 Easy Ways to Boost Your Income and Make More Money
Money Making Ideas: 21 Smart Ways to Increase Your Income
How to Live on a Budget
If you don’t budget, it’s easy to go into debt because your spending spirals out of control, and you’ll find yourself in a situation where you can’t make ends meet.
A budget gives you boundaries and helps you control spending. Once you create a budget that works for you and stick to it, managing your finances will be simple and painless.
The resources below can help you create and stick to a budget that works for you.
How To Live On a Budget | My Money Coach
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5 Tips for Living Comfortably on a Tight Budget | HowStuffWorks
How to Live on a Budget with 4 Valuable Lessons – The Dough Roller
50 Ways to Live the Big Life on a Small Budget | GOBankingRates
More Resources
Strategies
How to Pay Off Debt: 6 Strategies That Work – Credit Card Insider
Ways To Get Out Of Debt | Bankrate
10 Steps and Strategies to Getting Out of Debt in Less Than a Year – AARP Eve…
Snowball Debt Reduction
How to Get Out of Debt With the Debt Snowball Plan | DaveRamsey.com
How to Use Debt Snowball to Pay Off Debt – NerdWallet
Debt Reduction Companies
Debt Settlement Companies | Find the Best Loan for You | US News
The Best Debt Relief Companies| Bankrate
Services
Debt Consolidation & Credit Counseling | Debt Reduction Services
Getting Out of Debt: The Truth About Debt Reduction | DaveRamsey.com
Programs & Software
Top 3 Free Online Debt Reduction Tools
Pay Off Your Debt: Tools and Tips
The 5 Best Debt Tracking Systems
Apps
6 Debt Payoff Apps You’ll Want To Download ASAP | HuffPost Canada Money
Debt Paydown Calculator – Eliminate and Consolidate Debt
Debt Snowball Calculator | DaveRamsey.com
Spreadsheet
Free Debt Reduction Manager for Excel
I love this debt reduction Excel template & I hope you do too
Spreadsheet for using snowball method to pay off debt – Business Insider
Courses
Courses on Lynda.com Related to Debt Reduction Strategies
Courses on Udemy.com Related to Debt Reduction Strategies
Books
Books from Amazon Related to Debt Reduction Strategies
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News
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