For some of us, staying out of debt comes easier than for other people who never seem to have a problem paying bills on time. It isn’t always that they make more money or have fewer needs than we do, but what they do have is something that could benefit those of us who always seem to be running on empty. They’ve learned how to manage their money wisely.
If you find that you are always coming down to the wire when paying bills and are often getting zapped with fees for late payments, perhaps it’s time to take the bull by the horns. It’s time to get control of your debt. Here are a few suggestions that just might help.
1. Start with a Budget You Can Stick To
Creating a budget isn’t always as simple as it may sound. It is both an art and a science. However, it is a necessary evil, and everyone should create a budget they can stick to.
One pitfall so many people fall into is that they don’t plan for those little emergencies that always seem to arise when you least expect or need them. It could be the washer breaking down beyond the point of repair or it could be some mechanical issue with the vehicle that will cost a small fortune to service.
Don’t forget to add a line for entertainment because this is the only money you will use for going to an amusement park with the kids or on a date night with the spouse. Much is written on setting a budget so if you need a bit of help, it’s out there on the internet. Do a quick search online and you will be amazed at all the free budget templates you can find.
2. Avoid Using Credit Cards Whenever Possible
Credit card management is perhaps the one thing so many people have trouble with. When they haven’t set a thoughtful, comprehensive budget, they find themselves using plastic more than they should. All that interest adds up quickly and before you know it, monthly payments are more than you can afford. Consolidation loans are one option to put all those bills in one place so that you aren’t plagued with keeping track of due dates you somehow seem to miss frequently.
Perhaps one of the reasons why so many consumers avoid debt consolidation loans is because they don’t want to turn their credit card management over to a third party. If that’s something you fear, this credit card management resource lets you keep control of your cards.
Tally has a quick application that can help you save on finance charges by consolidating those cards and you will also have the freedom to close out accounts as you see fit. It’s all in your hands so something like this might be the solution to credit card debt you’ve been looking for.
3. Separate the Wants from the Needs
This is something most people, if they are honest with themselves, have trouble doing. Take, for example, that broken-down vehicle mentioned above. Although you really want a new SUV with seat warmers and video players in the back for the kids, you really don’t need one at this point.
If a few hundred dollars in repairs and service can keep your current model on the road for a few more years, it’s not an expense you need at this time. It’s better to spend a few hundred dollars now than to spend thousands in loan finance and interest charges over the next five years, isn’t it? Separating the wants from the needs is huge in terms of taking control of your debt.
4. Start a Rainy-Day Savings Account
No matter how small, always put something in savings with each paycheck. Even if you can only manage $25 a pay period, that’s money you can count on when those little emergencies crop up. This is something you should learn not to touch for anything but an emergency. It’s your contingency fund that you can draw from if needed but it will accrue interest when left untouched.
5. Consult with a Debt Counselor
If you’ve done all of the above and still have trouble taking control of your debt, perhaps it’s time to consult with a debt counselor. Many times community resource centers offer this service for free, but if you don’t have that option in your area, they can be found online. Just remember that there are ways to get debt management resources without paying for the service. Take the time to do a bit of scouting online but do get the advice you need.
Final Thoughts
The main takeaway from all this is that help is out there. Don’t continue down a path that is keeping you burdened with uncontrollable debt. It may not be a walk in the park until you get a hold of what’s plaguing you now, but that walk will be sunnier once the clouds of debt have been lifted.
