Wednesday, May 19, 2010

An Array of Debt Solutions

So you're up to your head in debt and need to find a way to reduce it. What do you do? Well, you can start with debt solutions you can have control over. Here are a few simple methods, but very effectively, and in no time you will discover that you would have considerable success in reducing your debt.

1st
Spend Less

The most effective way to cut down your debt is to reduce your spending and take advantage of the money you save to add to your debt payments. It may seem that this debt solution method would not give you sufficient funds to seriously reduce your debt, but then it really depends on how much money you want to sacrifice for the benefit of being debt free.

2nd Dine Out Less

One relatively easy and even healthy methods of debt solutions is to reduce the amount of money you spend on restaurant meals and take outs. Home cooked dinners are not only cheaper, they are in most cases a lot healthier than any fast food meal.

Limit your coffee to one cup or two cups a day at home and skip the espresso or latte. If you do not feel like you can give it all up at once, start by jumping one day at a time.
If you miss the caffeine, learn to like diet soda, which you can buy in bulk and drink considerably less than one dollar per serving.

3rd Save Up The Small Change

It is not obvious, but the collection of small changes add up eventually. Many banks offer a plan where in you will be able to round up all your debit and credit card purchases to the nearest dollar, and the difference will be deposited in a savings account. So each month, transfer your funds from savings to checking, which you can use to pay off your debts. Debt Solutions like this are easy to make, and you may not even notice it.

4th Sell a car

Cars are expensive. The price of gas is skyrocketing and show no signs of coming down again. Insurance costs rising each year, even if you never have an accident or make a claim. If you live in a two-car (or more) household, try to rework your schedule and your lifestyle so you can get by with a smaller car. This is a debt solution that can make a difference fairly quickly because you will save hundreds of dollars each month without a car payment, insurance payments, maintenance costs and gas in your budget.

Whatever debt solution you choose to implement, be sure to use the money you save to pay off your debts. Pledge right now to use all unexpected you receive from your debt. From now on, every birthday check each yearly bonus, tax refund and other unexpected you receive will go to pay your debts.

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