Is debt sinking you?
Debt is a burden that many people are shouldering these days. You are not alone by any means. If you’ve got debt, then you know how it can make you feel like you’ll never get ahead. As much as you may try to ignore it, it’s always lurking in the back of your mind. Ignoring your debt won’t make it go away.
Like some kind of evil weed it will just keep growing, inching up each month as the interest compounds. It seems there is no way to fully kill it in it’s place, even when you make extra payments.
While I can’t give you a perfect recipe for getting rid of your own debt, I can provide some suggestions that have worked for many people. Only you can decide which ideas will help you climb out of debt. It probably took some time to get into debut and it’s going to take time to get out. With commitment, a desire to change and a little bit of enthusiasm, you can be free of your debut.
Just take it one step at a time. Don’t think about your debt as a big picture.
If you do, it will bury you mentally.
Conquer it in increments.
Here are 10 ways to help you kill your debt starting right now…
1. Figure out what you owe. It sounds obvious, but many people who have debt don’t have a clear picture of its extent. Gather your credit card and loan bills and make a list of your balances, interest rates and minimum monthly payments. Now you know what you owe.
2. Don’t dig any deeper. Climbing two steps up and falling one step back is not the way to get out of debt. If you want to quit digging yourself deeper into debt, quit using your credit cards. Don’t cut them up since you may still need them for emergencies, but put them away so you won’t be tempted to use them.
3. Simplify your lifestyle. Take a long hard look at your spending and find ways to trim the fat. Instead of treating yourself with a shopping trip or restaurant meal, focus on how good you’ll feel when you get out of debt. Go minimal.
4. Enjoy free entertainment. If you spend a lot of money on concerts, movies and going out at night, look for free alternatives. Check online and in community newspapers for free events. You can also spend more time outdoors and visiting with family and friends. Instead of buying books, DVDs or music, visit your local library.
5. Be on the lookout for extra income. Take advantage of opportunities to earn more in your day job, such as working some overtime or increasing your commission. Assess your talents and hobbies to see if you can generate income outside your job. Not only will you be earning more money to pay off your debt, but you also may a secondary source of income in case your primary job is in jeopardy.
6. Transfer high-interest balances. Check your credit cards for balance transfer offers. The best offers will allow you to transfer from a high-interest card with a high balance to a card with a low balance that’s offering low interest for a limited time. Even with a balance transfer fee, you’re likely to save a significant amount on interest for several months.
7. Set up automatic payments. When credit card payments are late, the interest rate can be raised. This can be disastrous when you’ve transferred balances to get a low rate. Avoid late fees and interest rate hikes by setting up automatic payments. Do it.
8. Track your spending. This sounds harder than it really is, especially if you simplify your lifestyle and cut your spending. Just save your receipts and add them up every few days. You can use financial software, a spreadsheet or just paper and pencil to categorize your spending. At the end of the month, look at where your money went. Don’t be surprised if you’re spending more than you thought in one or two categories.
9. Put off big purchases. Think long and hard before making any big purchases, especially if it means taking on more debt. Drive your car for a few more years, clean your old carpet instead of replacing it and resist the urge to splurge on the latest gadgets. Once you do this for a bit, you will feel better about yourself.
10. Create an emergency fund. It might seem almost impossible to save money and climb out of debt at the same time, but if you begin to put aside a little bit each month you won’t have to use credit when an emergency or unexpected expense arises. Shoot to save enough to cover your expenses for at least 3-4 months.
If you dread the thought of living more frugally, just remember that it’s not going to last forever. Once you’ve climbed out of debt you’ll be able to make a fresh start and pursue the life you really want.
Here are a few sites I really dig on the subject of finances you might enjoy….
Affirmations are a valuable tool for replacing negative thoughts with positive ones. All of us have an inner dialogue that we carry on in our minds during every waking hour. The dialogue is so automatic that most of us don’t give it any thought, but according to cognitive therapists this dialogue can control our moods and influence the outcome of events in our lives.
If you slow down your inner dialogue and become aware of your thought patterns, you may be surprised to find how much of it is negative. Many of us repeat negative statements in our minds without any awareness that we’re doing it. Every time we doubt that we can accomplish something or expect the worst outcome, we send instructions to our subconscious that can determine whether we succeed or fail. When negative statements are repeated in our minds often enough, they become beliefs that shape our reality.
Since the statements that make up our inner dialogue are so powerful, doesn’t it make sense to banish the negative ones?
Instead of attempting to change negative thought patterns through will power, psychologists and philosophers have discovered that positive affirmations are one of the most effective ways to change the subconscious.
Affirmations are positive statements that are used to promote a positive mood. An affirmation is like a script that trains the mind. When it is repeated again and again, it focuses the conscious mind and subtly begins to alter the subconscious mind. Affirmations are a conscious technique that can be used to transform behavior, habits, reactions and attitude. These changes will in turn have a profound impact on the external life.
To be effective, positive affirmations must be repeated often enough during the day that they begin to replace negative thoughts. They should be short and easy to remember. Many people feel that affirmations should be in the present tense and should only use positive words. For example, “I am getting thin” would be better than “I will lose weight.” Affirmations should also be realistic. If your conscious mind judges that a statement is too far-fetched, it will filter it out before it can make it to the subconscious.
The use of affirmations has grown in popularity in the new millennium, due in large part to two best-selling books: The Secret, by Rhonda Byrne, and The Law of Attraction, by Esther and Jerry Hicks. Both of these books promote the theory that positive thoughts and feelings can produce life-altering results that may include greater happiness, health and wealth.
Many of the ideas in these books were drawn from earlier works, such as The Science of Getting Rich, written in 1910 by Wallace D. Wattles, and Think and Grow Rich, written in 1937 by Napoleon Hill. Another early proponent of positive affirmations was a French psychologist named Emile Coue, who in the early 20th century introduced the idea of “optimistic autosuggestion” through repetition of the phrase “Every day, in every way, I am getting better and better.”
The long history of positive affirmations is a testament to their transformative power. By repeating a wish as if it were true, your subconscious will perceive it as being true and your emotions will follow. According to the Law of Attraction, you will then attract forces it into your life that will make your wish a reality. Even if you are not a believer in the Law of Attraction, you can still use positive affirmations to improve your mood and develop a more positive outlook on life.
Here are some examples of positive affirmations:
- I am surrounded by love.
- I am powerful.
- I am filled with joy.
- I am strong and in perfect health.
- I am growing more beautiful each day.
- I have the strength to make my dreams come true.
- I have more than enough of everything I need.
- Today I embrace simplicity and peace.
- Opportunities are everywhere.
- I am successful in whatever I do.
- I am grateful for the people in my life.
You can create your own positive affirmations that will have meaning in your life by thinking about what’s important to you and what you’re trying to achieve. Imagine your ideal life and then try to form statements that reflect this ideal as a reality. For example, if you’d like to be less anxious, your affirmation might be “I am feeling calmer all the time.” Your subconscious mind will be more susceptible to statements that declare that something is true.
