debtCan you get out of debt? Yes, you can, no matter how far in the hole you’ve allowed yourself to get. Times are tough, it’s true, but that doesn’t mean you have to live in debt forever. Even now, with businesses failing left and right and paychecks getting lower, you can still take measures to reduce your debt and ultimately get rid of it entirely, probably much sooner than you expected.

So, how to you get out of debt? First of all, you need to learn how to spend less and save more. However, you must also allow yourself to have fun and enjoy life, otherwise you’ll feel deprived and start spending wildly again.  Having an entertainment fund is just as important as having a savings account, so be sure you set aside money for entertainment each month.  Then, follow these simple guidelines to put more cash in your pocket:

   1. Cook at home instead of eating out.  Save dining out for one night a week or month, whichever you can afford.  When cooking at home, involve the whole family to make it more fun for all of you and to create meaningful time together.
   2. Borrow from friends or buy from thrift stores whenever you need new clothes and appliances.
   3. Sell things you never use on eBay or have a garage sale to earn extra money.
   4.  Instead of going to the bookstore, go to the library.  It’s free, and they get new releases almost as soon as the stores do.
   5. Find free events in your community, such as museums, parks, concerts, and more!
   6. Watch DVDs at home instead of going to the movies.
   7. Learn to fix small things yourself, like holes in clothes or nicks in furniture.
   8.  Learn to change the oil in your car yourself.
   9.  Rent video games instead of buying them.
   10.  Instead of staying in expensive hotels when you go on vacation, go camping in the national parks. Many of them offer free campsites, or only charge a few dollars a day.  Plus, you get to get out and see the best natural settings our country has to offer!

Also remember that paying yourself first is important.  You should always set aside a certain amount of money for savings from each check, and you need to save it BEFORE you pay any of your other bills. YOU are your most important investment, and if you don’t take care of you, no one else will.  By paying yourself first, you’re securing your own financial future, and that’s the best kind of security there is. In this way, you can get out of debt and finally have control of your finances from now on.

This is the fourth installment in our credit & debt series. Be sure to check back for updates…

Filed under: Debt & Credit

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