4 steps to eliminating debt
1) Admit the problem and commit yourself to fixing it.
Many Pennsylvania experts recommend that you write a statement owning up to the problem and signing it. Others suggest you call a family meeting and have an open discussion about it. This type of problem is rarely felt or solved by just one person, and the ideas and efforts of every member of the family may be needed to help you eliminate it. People often find that this open acknowledgement of a debt problem is a relief to others in their families. (And it usually comes as no surprise)
Another effective way to make a commitment toward eliminating this problem is to talk with a Pennsylvania licensed credit counselor, knowledgeable friend or Pennsylvania trusted advisor. The key here is to ASK FOR HELP! You are not the only person facing this problem, although it can sure seem like that due to the stress it causes. Talking about the problem and seeking advice from qualified Pennsylvania professionals to develop a strategy to eliminate it is an excellent way to work toward getting things back on track. Finding other people who understand your problem can also be a huge relief if you've been shouldering this worry yourself for a long time.
2) Stop spending
This is where the rubber really meets the road! Take your credit cards, store cards, and gas cards out of your wallet or purse, and put them in a drawer at home. Starting right now, get through an entire day without borrowing money or charging anything. Pay cash, write checks, or use a debit or atm card. You'll find that this exercise in itself cuts your spending and pushes you to make only planned purchases. Most Pennsylvania residents are surprised at how easy it is to make the switch. After a week of eliminating unnecessary spending, you'll be ready to make an even bigger commitment. Cut up your credit cards, and cancel the overdraft feature on your checking account. This will feel like a drastic step, (and it is), but in fact, its the access to credit thats the biggest danger to you until you get your spending down to a healthy manageable level. Later on, you can ask for a new copy of one of your credit cards. What about emergencies you ask? The only emergency a credit card can usually help you with is the emergency of running out of money in your bank account.
3) Track your spending accurately
The next step is to get a clear picture of your spending habits and develop a new spending plan. You might think you already know how you spend your money. You know what your Pennsylvania mortgage payment or rent is. You have a good idea of how much you spend on groceries. You may know how much you spend on transportation or gas. But without tracking your spending, youll find you don't really know where all of your money is going. You need to write it down.
4) Pay down or consolidate your bills
The next step is to make a list of all the credit card payments you make each month. For each bill; The name of the creditor, bank, credit card, business, or person to whom you owe money. What you normally pay them. The total amount you owe. (exact amount from your most recent bill or statement) The annual interest rate that is applied to the balance.
Once your write this information down on a list, its easy to see how big or how small your problem is. Knowing the actual number grounds you in reality and lets you get down to the business of chipping away at bills to make them smaller and more manageable. When it comes to eliminating debt, knowledge really is power!
What if my debts are overwhelmingly large?
In this not-all-that-uncommon scenario, it may benefit you to consider rolling all (or many) of your debts into a Pensylvania debt consolidation loan. The major benefit here is that you are able to eliminating balances to many creditors at once. You accomplish this by borrowing against the equity in your Pennsylvania home often at a much lower rate than you were paying. Obviously, there are a number of factors involved to consider the proper way to structure this type of situation that a Net Equity Loans professional can assist you with. The caveat here is that you want to do this only one time. What you dont want to do is consolidate to eliminate credit card bills, then turn around and go on a spending spree because there are no balances on your credit cards. If you do not change your spending habits, you could end up in a much worse financial position later on down the road.
Eliminating debt is not a quick fix no matter how you look at it. But if you can address the issue with a step by step program, than you stand a much greater chance of gaining more control over your money, and ultimately, your life.
Below is a chart illustrating how a homeowner recently benefitted from a debt consolidation loan at Net Equity Loans.com