Know the Tips and Tricks to Make Money and Get Out of Debt Quick

Sun, Aug 28, 2011

Budgeting, Financial Advice

We all know that living debt free means very little financial stress and a lot more money that you can spend, the way you want. However, these days, working 40 hours a week for 40 years is not sufficient to ensure a debt free life. No matter how much you make you are bound to fall into debts. The best way and perhaps the only way to get rid of all of your debts is to pay them off. Earning a little extra money might help you to pay off your debt. Read on to know a few simple tactics to make more money and attain debt relief sooner than before.

  • Your first and foremost duty is to track all of your expenses over a month and writing down expenditures by category, including small purchases, such as the money you spend in the vending machine or on coffee.
  • Make sure you keep a written record of the monthly minimum payment for each debt and attempt to pay more than the minimum. Determine your minimum monthly expenditures and for payments that are not fixed, allot the largest possible monthly payment for that bill.
  • Enlist all of your current income, using pay stubs as a guide. Subtract your monthly expenses and debt payments from your income to determine your monthly expendable income. Use the remainder (If any) to pay off your debt.
  • Immediately get rid of cable, Internet (unless you need it for your job), expensive cell phone plans, dining out, trips to the coffee shop, luxuries at the grocery store and any other non-essential expenses. Cut up your credit cards, use cash and debit card instead. Start shopping in bulk and use coupons to ask for discounts to save money. Follow some basic disciplines like maintain your home and car, think before you buy, and sign up for freebies by contacting consumer research companies and manufacturers.
  • Sell anything and everything that you don’t use any more: electronics, clothing, books, toys and antiques all the stuff that sits untouched in your attic or storage shed. List items on Internet auction sites or Craigslist or e- bay. If possible hold a garage sale to get rid of small-ticket items as well.
  • In case you have equity in your home or have already paid it off, sell it and purchase a less expensive home with cash from the profit or rent until you are out of debt. Apply the remaining profit from the sale of your home to pay off your debts.
  • Find a second job to bring in fast money, or work overtime at your current job. Start writing articles online, doing Web designing from home, working at a local restaurant or getting a job of working retail. If you have professional training teach music lessons, babysit or mow lawns to earn a few extra bucks.
  • Now its time to combine all the money you made by following the above mentioned points and use it to payoff your debts. Follow financial guru Dave Ramsey claims and pay off the balance with the lowest interest rate first. According to this snowball method you are more likely to stay energized and intent on paying off debt by starting with the lowest balance as it offers more instant gratification.

Keep the above mentioned points in mind and attain your financial freedom in the best possible way.

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One Response to “Know the Tips and Tricks to Make Money and Get Out of Debt Quick”

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