It's time to get MOTIVATED! It's time to get ENGAGED! It's time to be HOPEFUL!
Our current financial status whether good or bad is not a description or map of who we are. We decide who we are and we are in control at all times. Take back your control mentally by building confidence in knowing you can achieve your goals. Once we open our mind to it, we can begin to create the tools to knock our debt down and out. Debt shouldn't nail you down. By nailing you down, I mean debt should not control you and limit your personal life enjoyment.
Courtesy pic by www.animatedviews.com
Our financial status is simply a creation of past decisions and current income. If we want to change it to make it better, we have to be optimistic. You can't win a fight if you think you are going to lose. If your money is limited, there are ways to have fun without spending money or by being frugal with your money. For example, try substituting a night out at the restaurant for a family potluck or substituting a day at an amusement park for a nature walk or picnic at the park. If your money is not limited but you make spontaneous purchases that limit your savings then you should put place your savings in an account before your go freely spending.
The biggest way to fight debt is to increase our disposable income. Disposable income is everything you have after you pay your essentials. Three debt fighting strategies that have helped me are below:
Our current financial status whether good or bad is not a description or map of who we are. We decide who we are and we are in control at all times. Take back your control mentally by building confidence in knowing you can achieve your goals. Once we open our mind to it, we can begin to create the tools to knock our debt down and out. Debt shouldn't nail you down. By nailing you down, I mean debt should not control you and limit your personal life enjoyment.
Our financial status is simply a creation of past decisions and current income. If we want to change it to make it better, we have to be optimistic. You can't win a fight if you think you are going to lose. If your money is limited, there are ways to have fun without spending money or by being frugal with your money. For example, try substituting a night out at the restaurant for a family potluck or substituting a day at an amusement park for a nature walk or picnic at the park. If your money is not limited but you make spontaneous purchases that limit your savings then you should put place your savings in an account before your go freely spending.
The biggest way to fight debt is to increase our disposable income. Disposable income is everything you have after you pay your essentials. Three debt fighting strategies that have helped me are below:
1. Find out how much interest is added monthly to
your credit card or loan account. Then pay the total interest plus your minimum
payment plus a little extra cushion. These payments can be divided into weekly
or biweekly submissions but will help you aggressively take control of the
account.
2. Pay the account with the highest balance first; preferably the higher interest rate too. As you pay one account off, snowball the payment used for the previous account to remaining accounts. You can pay each credit card account until it is under 35% of the credit limit or you can pay it off to use only during emergencies.
3. When creditors threaten to report you to the credit bureaus, be proactive early, and find out if you have other options. Ask for a payment plan to avoid reporting and see if you qualify for a reduction for being concerned about the account being paid.
Watch for our next personal finance post on ways to increase our income so we can begin to increase our disposable income. Feel free to leave comments on this post or social media on Instagram @practicalwallet, Twitter @practicalwallet, and Pinterest @practicalwallet.
Courtesy pic by www.idcwebs.com
2. Pay the account with the highest balance first; preferably the higher interest rate too. As you pay one account off, snowball the payment used for the previous account to remaining accounts. You can pay each credit card account until it is under 35% of the credit limit or you can pay it off to use only during emergencies.
3. When creditors threaten to report you to the credit bureaus, be proactive early, and find out if you have other options. Ask for a payment plan to avoid reporting and see if you qualify for a reduction for being concerned about the account being paid.
Watch for our next personal finance post on ways to increase our income so we can begin to increase our disposable income. Feel free to leave comments on this post or social media on Instagram @practicalwallet, Twitter @practicalwallet, and Pinterest @practicalwallet.
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