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 "Currently U.S. households owe an
astounding $2.3 trillion in non-real estate debt,
driving increasing numbers of Americans to turn to experts for help." writes Christopher
Gearon for US News.
High debt makes it nearly impossible to buy a
home and can even disqualify you from getting a job. More and more employers are looking at the
financials of prospective employees during the hiring process.
Gearon offers 6
Steps to dig yourself out of debt:
1.
How
much do you owe? Make a list of all your
debts, what the payments are and what the interest rates are and the terms for
payoff.
2.
Get
a Professional Involved: The National
Foundation for Credit Counseling is a good source to find a counselor near you.
3.
Rid
yourself of credit cards: It's important
for your credit rating to have 1 or 2, that are well managed, but close the rest of the accounts,
especially if you have no self control.
Gearon suggests using cash and debit cards only for awhile.
4.
Look
for the excess: "Track your spending for 30 days," suggests Gearon, "it could
open your eyes. A $3.95 daily
specialty coffee during the workweek could cost nearly $28,000 over a 35-year
career,"
5.
Look for ways to earn more money: Sell that extra stuff you never use, whether
it's at a yard sale or online. There
might be the possibility to take on overtime work or maybe even getting a part
time job until you are in the black.
6.
Set Goals:
But be realistic. Don't starve
yourself financially or you won't stick to it, just like if you were on a food
diet. "Whether it's going out to eat
occasionally or saving for a vacation," says financial planner Erika Safran,
who encourages her clients to be kind to themselves and save a little while
paying off their debts.
Digging out of debt can be hard work,
but the stress of high debt is worse and can affect your personal life, business
relationships and your future.
It's worth it!
Read the full article at US News.
Posted on December 08, 2011 11:53:28 by  Scott.Shields
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