It’s not breaking news that there are hordes of Americans currently experiencing huge debt burdens. While consumer debt has dropped over the past 4 years it is still higher than at any time in our countries history. Out of control spending and an instant gratification culture have certainly contributed to the problem. If you are one of the millions with out of control debt, where can you turn for debt help?
Having climbed out of the debt hole myself I recommend the first place you look is to yourself. You got yourself into this mess and if you really apply yourself there’s a good chance you can get yourself out too. You may not have the knowledge and tools to attack the problem currently, but you can learn, I did.
Start by looking to your spending. If you are employed and have such a huge pile of debt, that’s probably where your problem is coming from. If you can fix your spending you will also fix your debt problems eventually. Cut out unnecessary expenses like memberships and subscriptions, dining out, huge new car payments and you will be well on your way to cutting your debts. I know you don’t want to lose these things, but if the alternative is losing everything you know what needs to be done. Console yourself with the knowledge that you will come out the other side of this stronger and with a better grasp of your own spending habits. Cutting your spending now will pay dividends for the rest of your life.
Next take a look at your income. Are there ways to increase it? Of course there are. Unless you are already working 80-90 hours a week you have time to create additional income streams or even take a 2nd or third job. Again, you may not want to, but as long as you have those huge debts it is necessary. And if you choose to start a small side business you may even find that you enjoy it so much that it turns into full time employment sometime in the future.
If you can cut $500 from your spending and add $500 to your income how quickly could you pay off your debts?