7 productive Ways to control Your Debt

1) Understand the True Cost of Debt

Imagine it's a family member's birthday and to celebrate you are taking them out to eat. You are sitting at the table finding at the menu prices knowing that money is a little tight. You don't have much money on you, but you take some relax in the fact you have a reputation card. Now fantasize that when the meal is over and the bill arrives you see that it is 4 times higher than the menu prices. That dinner is now 0.

Would that bother you? Now fantasize the same thing happens at the gas station, the grocery store, and almost everywhere else you shop. all is costing you 4 times more than the posted price. Does that sound far fetched? Well it shouldn't because that's exactly what happens if you use your reputation card and only make minimum payments. Think this, a ,000 balance on a reputation card could take 30 years to repay and could cost you ,000 by the time it's paid off. So if you want to control your debt, the first thing you need to do is understand the true cost of buying on credit. If you pay 4 times more for all in your life, you can only buy about one fourth as much stuff.

2) Stop Using Your reputation Cards By Hiding Them!

Credit cards make buying things way too easy. Think about it, you don't even need to have any money on you, and you beyond doubt don't have to wait until you save up the money. You can buy what you want now and worry about paying for it later. That creates a lot of temptation to buy things you wouldn't even Think buying if you only paid cash. The best way to avoid using reputation cards is to just cut them all up. (was that you that just gasped?) I know, I know...that may be a bit radical for some, so if you can't bring yourself to perform plastic surgery by cutting up the cards, at least limit yourself to just one...for emergencies (and a big sale at Macy's is not an emergency!)

Then put it somewhere where it will not tempt you. If you are already suffering from bad credit, it may beyond doubt be a good idea to keep at least one card for accident purposes. With poor credit, you may find it more difficult to get a reputation card in the future. If you keep at least one list open, then you won't have to worry about applying. Just make sure you hide that card so you aren't tempted to spend. Here is a great tip...put your reputation card in a zip lock bag, put the zip lock in a container of water and place the container in your freezer. Not only will the cards not be tampered with, you won't be able to use them on impulse! For the best results with this strategy, I highly advise putting the zip lock bag in a coffee can before you ice it. That way you can't thaw it out in the microwave to get to it faster.

3) Understand the science of mind of credit

As we have already discussed, it is cheaper to buy with cash than with credit. cheaper is good. Just think, the less you pay for things the more money you have left over to buy more things (or save). It would seem like a no-brainer to use cash instead of credit, because reputation means you pay interest and that makes it expensive. Unfortunately, most of us have just the opposite view. We think it's cheaper to pay with reputation than cash. Let me give you an example. You are in the check out line at the store. The clerk rings up your purchase and now you have to make a decision. Do you give him the bill in your pocket or whip out the plastic?

Come on, be honest, you know you have done it. You fancy in your mind that you may need that for something else, right? everybody has done it! The fancy we do it is because there is a big psychological distinction when we pay cash than when we use credit. When you use the plastic you don't see any money change hands. In fact, you even got to keep your money...the stays in your pocket and you got the product. It sounds like a real win-win situation, until you realize you overspent and now have a big pile of debts. When you pay cash, you see and feel the money leaving your life right then. That beyond doubt makes you stop and ask, "do I beyond doubt want that bad enough to trade my money for it?" You don't ask those things with reputation purchases, at least not as often. So don't be misled by the science of mind of credit. The next time you find yourself wanting to keep the remember, that type of thinking is an illusion and leads to overspending and debt. Use cash instead, because there is a funny thing about cash...you can't spend more of it than you beyond doubt have.

4) Pay New Purchases in Full Each Month

So what do you do if there is something you need to buy and you don't have the cash on you? Well if you have your card on you, shame on you, it should be in the freezer. But if you do have it with you here is a good way to avoid overspending with it. Make a commitment to yourself that anyone you buy this month has to be paid in full this month. If you buy 0 worth of gas on your reputation card this month, you have to pay the entire purchase when the statement arrives and that's in expanding to the regular payment you would have paid on the card. This is a great way to overcome the science of mind we just talked about. Before you put that item on the store counter, and use your reputation card to pay for it, make a firm commitment to yourself that you will pay this purchase, and any other reputation purchases this month, in full when the statement arrives. Even if it means eating macaroni and cheese all month. It may sound tough, but you can do it. I know because I have done it. As a young bachelor it often seemed I had little more in my pantry than old stale cookies, but I didn't have debt. I don't know about you, but I'd rather be a little hungry, but free, than a well fed slave to creditors. So commit to paying off any new purchases in full each month and if you do, you will never see your reputation card balance go up.

5) Give Yourself a Cooling Off Period

A lot of the problem with debt is the effect of reputation cards, and most of those purchases are impulse items. That's why I strongly advise not carrying your cards with you, unless you have the willpower to resist the unavoidable temptations that arise. If you do carry the cards with you and find yourself about to make an impulse purchase, try this...stop and give yourself time to cool off. I often tell habitancy that as a financial consultant I had the chance to work with a range of clients. Some of the best lessons I learned didn't come from my formal schooling but rather from my wealthy clients. This is one of those lessons. One client in single told me that whenever he was tempted to buy something on impulse, he made it a point to delay the purchase by at least 30 minutes. He would spend that time walking straight through the store and asking himself if he beyond doubt wanted the item.

Most of the time this short delay helped him realize that he didn't want the item after all. He then told himself that he had almost wasted the amount that item cost, and so he immediately wrote out a check for that amount to one of his mutual fund accounts. He told me that uncomplicated strategy had resulted in salvage over ,000 a year. That uncomplicated investment, combined with aggregate interest, had grown into a hefty sum by the time we met. So take his advice, give yourself a cooling off duration and then put the money in savings.

6) Have a Vision

No, I'm not talking about eating the worm at the bottom of the tequila bottle. I'm talking about developing a vision of what you want your financial life to look like. I'm talking about finding your money purpose. Getting your debt under control means getting your spending under control. I have heard clients tell me lots of dissimilar reasons that caused their debt, such as divorce, illness, accident repairs, etc, but finally there is only one cause of debt. Debt is all the time caused by spending more money than you have. Now I understand that sometimes that can't be helped. Unexpected illness, job loss, and other catastrophe is not something a person consciously brings about. But in most cases, debt is the effect of living on the financial edge. It's like having one foot on a banana peel and the other in the financial grave. Most habitancy go straight through life spending all they make so they have no savings. Then when financial adversity comes along, as it all the time does, they have no savings to rely on. Why aren't we able to ever save money?

Because everywhere we turn, person is encouraging us to spend. Our neighbors, friends, even coworkers are all trying to keep up with the Joneses and we are too. You need to have a clear picture in your mind of what you want your financial life to look like. You have to create what I call your "money purpose." Money is a tool and it's meant to be used. What do you want to use your money for? Do you want to use it to help build a regain future for you and your family? Do you want to use it to help others, your community, or your church? The problem is most habitancy never take the time to elucidate their money purpose, so they spend their money fulfilling person else's purpose...like the reputation card companies. In case you aren't aware of it, reputation card clubs have a plan for you and your money. Want to know what it is? They plan to use your money to make themselves rich. Think this, Visa and MasterCard spend over ,000,000,000.00 (that's One Billion dollars) every year in advertising to encourage you to use their cards. Trust me, they have a plan for your money...do you? If not, you'll fall for their plan so take the time to create your money purpose now.

7) Get Help

Getting control of your finances and your debt is one of the most valuable financial decisions you could ever make. Stop and look at how much money a person makes during their working years. The average American makes a little over ,000 a year. Some make less, and some make more, but let's use that number. If you made 30k from age 25 to 65 (that's 40 years) you would make 1.2 Million dollars. Unfortunately, statistics show that the average person will give more than 0,000 of that money away in the form of taxes and interest on their debts. If that doesn't wake you up, you need a jolt of "Rock Star" vigor 7 drink because you are sleeping! If you are not able to save any money, if you have tried to set up a funds only to find you can't stick with it, if you are buried under a mountain of debt, don't be afraid to get some help. Three quarters of a million dollars is a lot of hard earned money to just let slip straight through your fingers. If you are serious about getting control of your debt, this last step may be the most important of all. Find a way to get solid financial advice.

Let's face it, you probably didn't learn it from your parents because no one ever taught them, and it's sure not taught in school. Most habitancy get their guidance from their friends, neighbors and coworkers. These are the habitancy known as the "Joneses." Well I have some bad news for you if that is where you get your advice...the Joneses are filing episode 13 Bankruptcy. You have heard the old saying: "You will come to be like the habitancy you associate with." Well it's true and it's especially true financially. You will think like your associates, and you will spend like them to. If you want to change your financial life change the way you think and who you associate with. Find some habitancy who are committed to getting out of debt and associate with them. Start a debtor's sustain group if you have to, and don't be afraid to seek the guidance of a professional financial advisor. It may well be the fastest and cheapest method of regaining control of your finances.

Hopefully these tips will help you preclude incurring new debts, and sustain you in becoming debt free. As I am sure you are aware, getting into debt is easy but getting out can be a challenge. If you effect the steps outlined in this record you can preclude yourself from facing the stress and bondage of too much debt. If you already find yourself in financial trouble, because of your debt load, I highly advise you seek professional assistance. Any problem can be solved with the right knowledge and understanding. Unfortunately, if you are struggling with debt, sometimes you come to be too emotionally involved in the problem to rationally find the right solutions. That is why professional help can be so beneficial.

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