subject: Eliminate Your Debt In Less Than 2 Years – A Legitimate Debt Relief Tactic [print this page] Eliminate Your Debt In Less Than 2 Years A Legitimate Debt Relief Tactic
It is entirely possible to get out of a reasonable amount of debt in 6 months or less. Doing so, however, will take extreme dedication and planning.
Accounting
Start by going over your previous month's spending. Account for every single penny that left your possession, even if the purchase was as minuscule as a pack of chewing gum. Then, write an E next to any purchase that you could eliminate from your spending for the next 6 months. "E" purchases would include purchases such as eating out, going to the movies, and other forms of entertainment. Write an R next to any purchase that you could reduce. "R" purchases would include shopping trips, especially if you are a soda drinker, smoker, or meat eater. Lastly, write an N next to any purchase that is necessary. "N" purchases include essentials, such your rent or mortgage payment and medication expenses. At the end of this exercise all of your purchases made in the last month should be categorized.
Spending Cutbacks
Now, determine where you can cut back on your R expenses and create new shopping budgets. You might have to make some sacrifices over the next 6 months if you are serious about getting out of debt. Quitting smoking, doing away with soda, and eating less meat can save a lot of money on your shopping trips.
Savings Account - A Great Way to Hide Money from Yourself
Open a savings account and have the money that you are saving on reducing and eliminating your R and E purchases be deposited directly into your savings account. If you don't see the money you are not likely to miss it.
Contacting Creditors
Contact your creditors and explain to them that you are serious about getting out of debt and want to pay your bill as soon as possible. Negotiate with them to see if you are able to get fees eliminated and interest rates reduced. It used to be that creditors wanted to make as much money as possible off of charging their customers' interest and fees. However, with the current state of the economy, creditors are thrilled to have their customers pay off their accounts because then they are guaranteed to make money.
