My Financial Tips

So you’re up to your head in debts, and need to find a way to reduce it. What do you do? Well You can start with simple debt solutions that you can be in control of. Here are a few simple methods but quite effective, and in no time you will discover that you would have significantly good results in reducing your debt.

1. Spend Less

The most effective way to cut down your debt is to reduce your spending and make use of the money you save to add to your debt payment. It may appear that this debt solution method would not give you sufficient funds to seriously reduce your debt, but then it really depends on how much money you want to sacrifice in favor of being debt free.

2. Eat Out Less

One relatively painless, and healthy, way to spend less is to cut back on the amount of takeout and restaurant food you eat. Not only is home cooked food less expensive, it is almost always healthier and better for you than restaurant food.

Limit your coffee to one cup or two cups a day at home, and skip the espresso or latte. If you don’t feel like you can give it all up at once, start by skipping it one day at a time. If you miss the caffeine, learn to like diet soda, which you can buy in bulk and drink for considerably less than one dollar per serving.

3. Small Change

Small change adds up, and most banks today offer a plan where you can round all your credit and debit card purchases up to the nearest dollar and deposit the difference in a savings account. Once a month, transfer the funds from savings to checking and use it to pay off your debt. This debt solution is a painless one you may never notice.

4. Stick To One Car

Owning cars is expensive. The price of gas is skyrocketing and shows no signs of coming back down. Insurance costs increase every year, even if you never have an accident or make a claim. If you live in a two-car (or more) household, try to rework your schedule and your lifestyle so that you can get by with one less car. This is a debt solution that can make a difference fairly quickly, as you will save hundreds of dollars every month without a car payment, insurance payment, maintenance costs, and gas in your budget.

Whichever debt solution you choose to implement, be sure to use the money you save to pay down your debt. Pledge right now to apply any windfalls you receive against your debt. From now on, every birthday check, every annual bonus, tax refund, and other windfall you receive will go to pay off your debt.