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Getting Behind
Getting behind on your debts owed can be a very frustrating and trying time for you and your family. Depending on how far behind you are, there are other repercussions, such as your credit rating, that will affect you further down the road.
Examine Why
Why did you get behind in the first place? This is a very important question in helping you understand what you need to do to get out of this predicament, and prevent your self from getting into the same or similar situations in the future. Was it your spending habits or not properly planning for emergencies? In any case, track down the cause, change your spending habits, and you will bring about a different effect.
Create a Budget
The necessary evil. This is where many people get tripped in planning for their financial future. Creating an accurate budget allows you to see exactly what is coming in and going out. It allows you to see what you can put away for Christmas, birthdays, office parties, etc. When trying to determine how to pay your debts, this is one of the first steps towards and informed decision.
Cut Your Bills in Half
Sometimes, it may come down to paying on the debt or eating. We know who wins this. The way I have found that both sides can somewhat win is to split your debt payment into two. If you get paid this week on Monday, talk to your creditor and ask if it is possible for you to pay half this check, and half the next. Rather than get nothing at all, most creditors will agree.
Add a little extra each payment. If you have a bill that costs you $50 a month, sending $30 each pay period probably will not hurt you as bad, and you begin to get ahead of your payments if you pay the little extra. Getting ahead of your payments can save you money on the interest that you are paying, provided you note the extra money is toward the principal. Some companies apply the extra money accordingly, whereas others need it to be specified.
Get Money Wise
For you to be reading this article, lets me know that you are working on this. Read as many articles and books as possible, as this is your ammunition to fight the war against debt. Also, you may be able to help someone else overcome these issues such as a loved one.
Take Action Today!
There is no better time than the present to get started. The sooner you begin your financial action plan, the sooner you will be saying good bye debt, hello financial freedom.
Gordie Prescott is a motivational speaker and success coach in the areas of personal, career, and financial success. Gordie also owns GordiePrescott.com and the Money Matters website.
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