5 Easy Tips To Going On A Debt Diet

Everyone is looking for ways to reduce their debt snowball and put more money in their pockets.  It is possible for families to wipe out their existing debt and live a prosperous and comfortable life within their means.  And as the chief financial officer of your family, moms are in a unique position to be the leaders in getting their families out of debt.

Here are five tips that will help you get on that debt diet:

  1. 1. Revise your budget to include debt repayment – The key in gaining control over your debt is to create a workable budget. Rather than cramping your style, a household budget or spending plan can help bring you freedom.  You’ll instantly know where you money is going, what your essentials cost and where you can spend on your wants.
  • Your family budget should cover your necessities like housing and transportation, variable expenses like food and household items, savings, fun and of course, debt repayment.
  • If your budget doesn’t include money to pay off your debt, you will never escape the snowball of debt.  By paying off debt – and NOT accumulating more, you will see your debt go down while your savings go up.
  1. 2. Stop using credit cards. You know you do it – you use credit cards not simply for their convenience, but to stretch your buying power and buy things you cannot afford – yet.  Soon you are under a mountain of credit card debt, barely meeting the minimum monthly payments.
  • Minimum payments will keep you in debt because every month interest continues to accrue on your original balance. Look at this number. A $1,000 balance on a typical credit card can take 22 years to pay off if you make only the minimum monthly payments!
  • If you do want a big ticket item, don’t buy it on credit. Delay the gratification for awhile and pay cash for it.
  1. 3. Buy luxury items with cash. Buy your luxuries with cash – this can include your chai lattes or the new cashmere sweater you want.  Paying with cash will keep these luxuries from sinking your budget, while you’ll avoid the temptation to overbuy.  And remember, a luxury once sampled, becomes a necessity.
  2. 4. Seek help. If you want to ensure that you’re making the best decisions or truly need help going on a debt diet, make sure you seek a financial professional.
  3. 5. Get the rates you deserve. You might think that you have to accept the interest rates offered by banks and credit card companies but that’s not true.  Especially if you have been a long standing customer, you may be able to get a lower rate on your credit card just by asking.
  • Nothing takes the excitement out of a new toy or nice vacation more than the large payments that strain your budget month after month.
  • Credit counselors, financial planners and accountants are experts in the areas of savings, debt repayment, investments and tax deductions. Implement each of these areas into your finances to eliminate financial strain and secure a stable financial future.
  • Talk to the people at your financial institutions. You may be surprised at how willing they are to budge.  If you’re getting nowhere with an associate, ask for a manager.
  • A good credit rating and strong, on-time repayment history will bolster your case for a lower interest payment.
  • Ask for a higher interest rate on savings accounts as well. This is a double dose of smartness.  Your money will earn more money at a higher rate – while your credit card balances are subject to a lower interest rate – you’ll be paying less on your debt and get more return for your dollars in the savings bank.

Your family can go on a debt diet with a sound household budget.  You can fight off the snowball of debt just by following these five simple debt reduction tips. Financial freedom for your family is just a few steps away.

Want a complete system for better managing, saving and spending your money – and really building your family’s wealth ?  Then check out the RichMama System: http://www.richmamasecrets.com/onerichmama

Be Sociable, Share!

Speak Your Mind