Many of us find ourselves buried in a mountain of debt that we find impossible to get out of. Credit is so easy to get these days and before you know it the credit card companies have us right where they want us: enslaved. Getting out of credit card and other debt is not easy but as soon as you know there is a problem you need to do something about it and you need to do it today. The first thing you need to do is look at your debt crisis as a war to be fought. Declare war on your debt.
Consider debt the enemy. Kick debt out the door by not taking on any new debt. Make the battle on debt a daily priority. No general fights a war without a battle plan and you will need to do the same. Some of the first priorities you must make in your battle plan are to reduce your expenses or cash outflow because you actually have more control in that area than you do in generating more income.
The vast majority of us have fixed incomes and corporations get more and more stingy each year with their pay raises thinking that they do you well when they give you a 2% increase. Considering this, you must focus on reducing the cash outflow. That brings up the topic of fixed expenses versus variable expenses. You should always strive to have fixed expenses because you can budget on fixed expenses.
In other words, don't have a cell phone plan with some low monthly fee and a low number of free minutes. You'll find that your monthly bill will fluctuate quite a bit especially if you have a teenager who talks constantly on it. Get yourself a monthly cell phone plan with enough free minutes so that you can be reasonably certain that the charge will be the same from month to month.
Now you can budget that. Another way to avoid variable expenses is to cancel the long distance service on your regular land telephone and make long distance calls from a cell phone plan with free long distance. If you have to call make international phone calls then get you a calling card for long distance calls to that country. With a calling card you will know exactly how much you are spending on long distance calls. Carefully look at all of your expenses. You may have to make some tough choices here.
You may have to cut down on your gasoline expense and get on a bus or even ride your bike to work. For some people this could be a total shock. You may have pack your lunch at home and take it to work.
If you smoke, it's high time to throw out those nasty things and save some money as prices for cigarettes range from $3.50 to $4.50 a pack in the United States. Take a look at your auto insurance. When you are in a war sometimes you have to take risks. Maybe it's time to raise the deductible on your auto insurance so that you can reduce your premium.
Convert your whole life insurance to a cheaper term life insurance policy. Take a look at your medical insurance. If you are a healthy person then you could save money on premiums by opting for a higher deductible health plan. When you cut your expenses, you can take the money you save and apply it to your debt. As you can see there are countless variations on how you can save money but its all part of the winning the war on debt.
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