How To Get Out Of A Debt – Here Are The Secrets Don’t Want You To Know

Staying and getting out of a debt is not so easy.  You have the clear picture of the amount of debt and thinking that you are not able to get out of it all.  Friends, learn how to stop incurring new debt and change your life with full of colors forever.  Here are some secrets from Doug Constable which help in getting out of debt:

1.Stop increasing your debt: If you have more than one credit card, cut them up.  And also cut any convenience cards like department store cards, gas cards, etc.  Take the help of credit card only to buy the emergency things and things that you know you will able to pay off in a small amount of time.

  1. Record your spending: The best concept is writing down in a sheet of paper what you spend. Actually, it is the best key to getting out of debt. An individual will be in debt because you spent a lot of money which didn’t have.  Your debt will not come from a single purchase, it has come from spending amassed over time.  You can avoid your debt, just by writing down every penny you spend, no matter how small it is.
  2. Categorize your spending: Categorize all your monthly expenses into logical groups of Must, Should and Likely to have. The “Must” things which are very necessary to survive the life like food, rent medicine, food for pets, etc.  The “Should” things are those which are not necessary to lead the life.   Like new clothes, gym membership etc.  Likely to have are the things which really don’t need but it only enhances your life.  Like Magazines subscriptions, cable tv, weekly coffee with friends, IM on your phone etc.
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By categorizing all the things which you need monthly, you will get a good idea on what to spend and you can figure out where you need to cut back your spending.  I am not telling or suggesting you to eliminate the categories like should and likely to have.  Make a proper planning and spend your money.

  1. Make a budget based on your spending record: Write down the amount you spent last month in each category, which will be a reference for the next month. Don’t be afraid if your amount is too much.
  2. Only use Cash: If you have a plastic card (credit card) you will be spending more. Try to allocate some amount of cash for monthly spending like groceries. When you are shopping at a store take the cash,  which is allotted for groceries, so that you will spend only that amount.  You can’t go beyond that because that’s all you literally have.
  3. Figure out your debt pay down fund amount: With the help of your budget, you will get an idea of which areas you need to cut back. You can also see the categories where you need to increase your spending. Instead of paying money for a gym membership, if you cut down your habit of drinking coke every day.  Chances are there your budget fat can be trimmed.  The trimmed amount can be paid to the debt.
  4. Figure out how much you owe, to whom and on what terms: If you don’t have a clear plan about your debt, it keeps on overwhelming. Collects all your bills and  make a simple list of debt.  Write down all the particulars and facts including the name of the creditor, your total balance, your minimum monthly payment and interest rate.
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