What to do if you're in debt

There are many ways to get out of debt and some are simplier than others. If you're in debt reduce your spending to a minimum. Work on a monthly budget that will help you to keep track of the money flowing in and out of your accounts. Ask family members to assist you in getting out of debt, and get rid of the 10 credit cards you have.

Stop spending: 

There are so many people who are in debt that do not see their bad spending habits. The trick is to reduce spending significantly on impulse purchases and wants. Focus on the things you need and you'll use. There are many situations where we buy something that just sits there collecting dust. Learn to live in a strict budget and get into the mentality of saving for the long run. Don't take a mental shortcut to make yourself feel better by saying "hey, I'm already in debt so what's a few more dollars?" Don't do this to yourself and many people who take this route end up in stressful situations.

Money flowing in and out

Live on a budget:

Organize the amount of income and expenses into a chart to make everything clear. You'd be surprised by how weak our memory is when it comes to remembering our expenses. Almost always we forget about the small expenses that add up on a monthly base. It is a good idea to have everything written down to keep track. These small accumulating expenses are the cause of most people being in debt. Categorize your spending for food, transportation, rent, entertainment and others. Make a list of the things you need and the things you want. There is a different between needs and wants. Needs are thing that you "must have" in order to live; like food and shelter. Wants are things you  "like to have" but can live without like gym memberships and Wonderland passes. When spending money on a budget, buy the things you NEED first, and if your budget allows then buy things you want.

Ask family members for financial support:

If you never share your situation with your loved ones, how would they know? We live in a society where we have to be independent, it makes us feel better. Being independent doesn't mean we can't ask for help, it doesn't lower our status, and many times family members would love to help out. Getting help from your family has many benefits, there are no hidden costs, interest rates, or penalties for failing to pay on time (Please pay on time and don't abuse). 

Cut up credit cards:

Stop increasing your debt by getting rid of the things that cause debt. You should have only one credit card and it should be only used for emergencies that you have the ability to pay back. Credit card companies make more money when you're in debt. They want you to be paying their minimum payment for the rest of your life. Your debt is their assets. Pay their debt ASAP and cut up their card.


Follow these simple steps and you should be debt free in no time.