11 Ways to Reduce Personal Debt

Climbing out of debt can be a long and tedious process but there are a variety of things you can do cut down on the amount of debt you have. Losing debt is about the battle between income versus expense. The more income you have coming in and the less you have going out the more you have to contribute to paying off your debt. Here are eleven ways you can reduce your debt:

1. Create a budget

A budget is your one stop shop for controlling your personal finances. It will allow you to see where you are spending too much and where you can stand to save.

2. Review Your Luxury Services

If you are faced with a large cable bill at the end of each month you should consider downgrading. How many of those channels do you actually watch anyway? You may even consider cancelling your television service completely and making the switch entirely to streaming services to watch movies and TV shows if that would be cheaper.

3. Review Your Insurances

If you think your insurance payments might be the issue, you should shop around for better prices. If you bring down your payments, that more money in your pocket.

4. Home Phones

If you have a mobile phone and you live in an area with adequate coverage you should consider cancelling your land line service.

5.  Food

Food costs really can add up if you’re not careful. Try to limit the amount of times every month that you eat in restaurants and try to prepare your own meals more often. Don’t be afraid to hunt for sales and generic items.

6. Want vs. Need

Analyse your expenses in terms of wants and needs. Once you fulfil all your requirements look at your expenses that are luxury or entertainment items. You should cut some of them out if you want to eliminate your personal debt. Continue reading

I’m In Debt… I Give Up! (You Can Escape Overwhelming Debt)

When the going gets tough, the tough get going. Millions of Americans are finding the burden of debt overwhelming. CNN Money Reports that according to the American Bankruptcy Institute, filing for bankruptcy was either a forced or chosen strategy used by 1.46 million individuals and 36,000 businesses in 2011. 2012 projections are very similar. Throughout the EU, the data is consistent.  Personal insolvency is a global epidemic.

At the same time, real property foreclosures are at record highs in the world’s most established economies. The causes of this suffering are numerous, including a worldwide employment crisis, unrealistic purchasing habits and careless money management. As a result, persons find that when the unexpected event occurs, we are not financially equipped to deal with our obligations. In simple terms, our liabilities outweigh our income.

And, when debt outweighs income, the situation either requires a cash infusion or outstanding cash management. A combination of the two is best. Continue reading