8 Ways To Start Eliminating Your Debt Today

We all know that through proper budgeting and practical living we can eliminate or at least ease our debt loads. But do you know appropriate financial strategies can change your entire financial life and turn your unmanageable debt loads into future wealth and security. Here are a few tips which can be an immense help in this regard and can instruct you to deal with your heavy debt loads in a better way.

  1. First get your daily budget on track. You can use any online budgeting program or maintain an excel sheet for this purpose. Categorize your monthly expenses using categories such as housing, food, entertainment, utilities, etc. Now calculate your income and see if it covers your expenses or do you have a shortfall.
  2. After analyzing your budget thoroughly identify the areas where you tend to overspend. Curtail these expenditures. Time and commitment are the keys to expense reduction.
  3. Negotiate with your bank, auto loan companies, insurance agents and above all your credit card issuers to reduce your monthly interest rates. If you have good credit ratings it won’t be too difficult. The credit card companies do not entertain such requests easily and it could take 30 to 60 days to make the final decision. Keep calling them until you get the reduction in your loan interest rates.
  4. If you are drowning in debts and find difficulty in dealing with multiple debts, then you can merge your multiple loans and transfer them to a single account with lower interest rates. This debt consolidation can be an immense help to you and can reduce your debts to a great extent. Be aware of the fees some companies charge for consolidation.
  5. Try to find some ways to earn additional income. You can sell off your excess items yourself or take the help of online marketing sites like e-bay. Go get a part-time job or an overtime schedule for added incentives. Try all possible and legal ways to avail a greater source of income.
  6. Create emergency fund and retirement fund and save in them for your rainy days. Increase the savings eventually. Curtail your entertainment costs. It is being said people spend maximum on their foods budgets. Make a proper lunch and dinner plan and by groceries accordingly. Cooking can save both your health and money so prefer to eat home-made foods over junk ones. If you are planning for a party make it a potluck. Everything that you have saved from these loopholes can help minimize your debt burden.
  7. Stop using your credit card and begin paying with cash for the time being. It can save some extra bucks in your wallet which you can make use of later to pay off your debts.
  8. Put constant and sincere efforts to reduce your debt loads. All the above mentioned points can help you to lead a debt free life in future.

About the author

Kimberly J. Howard, CFP®, CRPC®, ADPA®

Kimberly J. Howard, CFP®, CRPC®, ADPA® is the founder and owner of KJH Financial Services in Newton MA and Denver CO. She enjoys helping clients explore and achieve their life goals through effective comprehensive financial planning.

Kimberly holds a Master of Science degree in Computer Science Information Management from Boston University. She earned a Bachelor of Science degree in Mathematics and Physical Education from Stephen F. Austin University in Texas. She attended Boston University for her Certification in Financial Planning and H&R Block for Tax Preparation Certification.

Kimberly is currently an adjunct faculty member at MetroState University where she teaches General Financial Planning Principles, Income Tax, Retirement Planning and Estate Planning. She is a past adjunct faculty member at Boston University and The College for Financial Planning.

Kimberly is a member of the Financial Planning Association (FPA) and The National Association of Personal Financial Advisors (NAPFA). She was named to the Metropolitan Who's Who Among Executive and Professional Women. She is an expert Advisor for Nerdwallet, BrightScope, Morningstar, and FiGuide.

Kimberly promotes a life planning approach with a balanced work/life style. She is active in sports including cycling, golf, skiing, and hiking.


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