Tips for Handling Large Debt Problems

by GuestPoster on July 19, 2010

If you are experiencing problems with debt, don’t worry because you certainly aren’t alone. There are more Americans working harder than ever to fight off huge debt loads that they have accumulated over the years. The experience can be both frustrating and demoralizing, and it certainly has taken an emotional toll on many hard-working people. It’s always best to not get into debt in the first place, but we all know how easy it can be to spend money that we don’t quite have in our bank accounts. So the first step is to stop beating yourself up over acquiring debt, and here are five more tips to help you to get that load off your back.

1. Americans love to eat and food is a major expense for most people. But you might be amazed at what you discover if you ever take the time to add all your food expenses up. See how much you spend on take-out and fast food, and try to find ways to save money on food you don’t need. Cooking for yourself is much more preferable, and always be on the lookout for valuable grocery coupons.

2. Cut up all your credit cards. Well, you should make sure they are paid off first, but once they are try to cut down on using any credits and leave one intact for emergencies. No more credit spending, and certainly no more instant loans or borrowing further money.

3. If you have several debts, then concentrate on the biggest one with the largest interest rate. Interest rates can be huge monsters that may seem impossible to get rid of. But if you concentrate your efforts onto one amount, you will feel a tremendous relief if you can reduce it down to zero.

4. Keep records of all your spending- and that means everything. From a cup of coffee to an ice cream, you want to keep track of everything you spend. Incorporate your findings into a budget and try to stick to it as best you can.

5. Start up an emergency fund. This might be hard to do if you are busy trying to pay off debt, but if you do manage to reduce your amount owing then make sure not to get into the same position again. Start up an emergency fund that isn’t to be touched and try to build it up as much as possible. If debt problems come calling again you can consider using this fund, but hopefully you will have made significant changes by then to ensure debt problems don’t reappear.

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