Before the tips, a quip:
“Credit buying is much like being drunk,” says Joyce Brothers. “The buzz happens immediately and gives you a lift….The hangover comes the day after.”
Once you get over the “hangover” of your financial problems, you need to make sure you live a debt-free life! Mary Hunt’s Debt-Proof Living: The Complete Guide to Living Financially Free (Debt-Proof Living) is a fantastic resource for achieving your financial goals. And, here are six tips for paying off your debt fast and solving your money problems from Andrew Housser, of Bills.com…
Solving Financial Problems – How to Pay Off Debts Fast
First, make sure you know the difference between good debt and bad debt.
1. Understand your spending habits. The first step to paying off your debt is to understand your saving and spending habits. To get your spending in control, use a small notebook or PDA to jot down every penny you spend for at least two weeks. This will help you identify the source of your financial problems.
2. Create a plan to pay off debt and achieve your financial goals. The second step to paying off debt is to draft a spending plan or household budget that includes all income and expenses. First, add up all mandatory bills such as mortgage, car payments and utilities, as well as debt repayment. Any extra money can go toward extra debt payments — and if some is left over, it can be spent on “extras” such as hobbies and entertainment.
3. Be disciplined about solving your money problems. The third step to creating financial abundance is to set, maintain, and keep working towards your financial goals. Including your family members can help. When it comes to your finances, remember that it is all in the service of a greater end: your freedom from the restraints and pressures of being consumed by debt problems.
4. Plan for the unexpected financial crisis. The fourth step to paying off your debt fast is to plan how you’ll handle unexpected money problems. First, build an emergency fund. “Before a crisis comes up, think of how you might handle it,” Housser suggests. “Save a few dollars every month to take a vacation, and wait to upgrade your TV until your debt is paid off. By budgeting ahead of time, you’ll stay ahead of the game and have a reward to look forward to in the future.”
5. Visualize financial abundance. The fifth step to solving financial problems is to take a few minutes every day to imagine the new, debt-free you! Dream about how your discipline and new spending habits will pay off in the end. Sit back, close your eyes, and imagine a time when no requests for late payment arrive in the mail and there are no mounds of loans to pay back. Look forward to the results of planned savings, such as vacations, new furniture or even retirement!
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6. Reward yourself for solving your financial problems. The sixth step to enjoying financial freedom is to set money goals and reward yourself for achieving them! To stay on track, be sure the reward does not reinforce the habit you are trying to break. That is, plan a weekend picnic or other inexpensive outing to celebrate — not an expensive splurge on a new video game system or ski trip to Switzerland!
If you have any questions or thoughts on these ways to solve financial problems and pay off your debt fast, pelase comment below…
Bills.com is a free one-stop portal where consumers can educate themselves about complex personal finance issues, credit cards, debt relief assistance, insurance, mortgages, and other loans.
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