Strategies for Eliminating Personal Debt

Do you lie awake at night stressing under a mountain of personal debt? Debt hangover from credit card usage for discretionary purchases can become a financial noose. The sacrifices necessary for delayed gratification far outweigh the heavy burdens posed by credit card debt. There is a way out – and it involves substantial amounts of self-discipline. Follow these recommendations from the professional financial advisors to begin your journey to eliminate personal credit card debt.

For any goal to succeed there must be a detailed plan that can be executed in realistic steps. The first step is to create a spreadsheet listing each of your credit card debts, balances and minimum payment requirements. Arrange these in ascending order with the lowest balances listed first.  Total the outstanding balances. Set a date by which you wish to eliminate these balances. Divide the number of months between now and your goal by the total outstanding balance. This is the sum that you wish earmark each month towards debt elimination. You can break this down further by weeks or even days.

Always pay the minimum amount due on each card during this pay down process. Plan to pay off the credit card with the lowest balance first. This will allow you to see progress towards reaching your goal. The next step is to identify your monthly discretionary spending budget. Subtract your fixed expenses, this includes minimum payments due on credit card debt, from your monthly take home pay. The result is your discretionary spending allowance. It is from these funds that you will pay off the credit card balances. This plan will only work if you cease to add additional debt.

Forgo that designer cup of coffee and lunches out with coworkers every day. These savings will add up quickly. Take advantage of the awesome deals offered by Groupon coupons and enjoy the huge values offered by  Buckle when its necessary to shop for basics. One option for speeding up your timeline is to secure a part time seasonal position. Earmark your earnings towards the reduction of your debt.  This all requires self-disciple and sacrifice. The debt didn’t occur overnight and paying it off will take time. Achieving your goal will be more than worth the sacrifices you will have made.

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