Every New Year’s resolutions are set. Many Americans promise they will start to get out of debt, but roughly 88 percent fail in that goal simply because of motivation. Now is the time to become motivated and keep working. Getting out of debt is not an easy solution. It takes hard work and a plan one can live by. There are some tips that one can follow to help keep a person motivated to get those debts paid off.
It is hard to get started unless you have a baseline. It is best to record every expense one has especially in the loans and credit cards. The lists you create need to be separated out. For example, revolving credit should be listed separate from monthly income and the must pay expenses. Other expenses like food, utilities, and transportation also need to be listed. There are certain expenses you can reduce, while others have a specific minimum you must meet each month. Additionally, you have debts you want to pay down quicker and those are credit cards, mortgages, and loans.
Obviously there are some expenses you cannot do without like food; however, you can reduce what you spend on food by passing it on priorities. Is it necessary to buy ice cream or that very expensive hand cream? You could even reduce what you pay on apples, meat, milk, and essential foods. Take advantage of coupons, discounts, and lower priced goods. You may actually find some canned goods are better than those you pay a higher price for.
Get organized right away each month and for the entire year. What is the payment amount, interest rate and due date? What can you afford to send to your creditors? Can you afford to send more? This last question will be addressed a little later.
Save you income. Start by saving 1 percent of your income, the next month make that 2 percent, until you are able to double or even triple the savings you put into an account. You should have three to six months of living expenses in a savings account. If you start saving now, even a small amount, you will discover it is easier to face those unexpected bills that occur. An emergency fund is necessary.
You may find at the outset of your debt relief plan that you are unable to save even 1 percent of your income. It may be necessary to examine debt consolidation as a means to reduce your credit card debt payment and interest. When you have reduced the payments you have during the month you can start to save a little money at a time.
You can also start to pay down the debts quicker. The most important thing you need to know is when to get help. Bankruptcy may be your only option, but until you have exhausted all possibilities try for another option other than bankruptcy. There are definitely options for debt relief as long as you start out with motivation.

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