Let’s get right down to it, being in debt stinks! With the way the economy is, the price of everything is going up but the paycheck is not. It doesn’t take a rocket scientist to know this, but there is hope and light at the end of the tunnel and there is a way to learn how to cut debt in some easy steps that I am going to show you.
I’ve learned these steps by listening to someone who was in debt and decided to change their life for the better. It wont be easy, I’ll tell you that right now. Did you know those little expenses every day like a cup of coffee or soda you buy on the fly can add up to dollars that you can be using? Well then, let’s get our learn on!
- Step 1 and the most important step. Either go to your bank or get online and print out your last bank statement.
- Find 4 highlighters, perhaps yellow, red and green and blue or whatever you have available to use, even if it is a pen. Do NOT go out and buy these, use what you have!
- Sit down in a quiet area and get to work. Here’s what you are going to do. Mark all the recurring monthly payments like your mortgage, car loan, personal loans or anything that occurs every month in GREEN. These are things that will not change.
- Now mark all your expenses like electric payment, utilities including phone, cable, water, sewer, garbage, etc. in another color.
- Now I want you to mark everything that you have bought in the last month at a department store, at a fast food store, any type of gas station extras, coffee at Dunkin Donuts, a meal at work, everything that shows up on your bank statement. Include Cash that you took out also. Mark that in YELLOW or whatver color you have available. Remember, do not go out and buy anything right now, you can’t afford it. Stop buying these things as of right now!
- I want you to mark each time you went to the grocery store in another color also.
Take a good look at everything you have spent money on. Add up what you have been spending for coffee, extra meals, little things that you could do without! Most people will have between 400 to 500 dollars a month of spending for excesses that could be used to cut debt. Take some or all of that extra, divide it up from each paycheck and pay it on one bill that you want to get paid off. If you do this every single month, you will see how to cut debt in some easy steps. Don’t deprive yourself, there will be times to indulge and you have to, but you can make a big difference in your life if you follow a few of these steps. Eliminating debt will help to take stress out of your lifej.
Good luck. I’ve done it and i was shocked to realize that I was spending about 400 dollars a month of money I didn’t think I had. What I also realized is just how much money I spent on groceries. Were they all necessary? Who knew!