Get out of debt

During the course of growing up, many of us find ourselves slowly falling into debt until one day it seems overwhelming.

Scared to answer yet another call from the bill company. Stressing about how we will make the rent and therefore ignoring the problem like it will just go away

So what can you do? Where can you start in order to get back on track?

Write it all down

Step one, get a piece of lined paper and put a line down the center. On one side right down all your monthly income, on the other side write down all of your reoccurring bills, such as rent, utility bills, insurance and phone. Add the totals.

Step two, make a new list under the bills and estimate the following costs:

-Monthly food costs. Do your best to separate from grocery shopping from dining out.

-Your monthly cost of fuel, cabs or transit.

-How much you spend on entertainment. Movies, concerts, subscriptions to Netflix or anything as such.

-Monthly expense on extras such as cigarettes, alcohol or recreational drugs.

-How much is spent on pleasures, like massage, getting nails or hair done, or buying new things.

Add any other area that you spend money on a regular basis and then add the totals.

Step three, now that you have the numbers in front of you, you can see where the money is actually being spent. In most situations, there is unnecessary spending that is the culprit of our unbalanced checkbook. Look at where you can start cutting costs.

Answer the phone and get out out of debt

When we owe money, calls come in almost daily with someone asking when it will be paid. Just hearing the phone ring starts our heart to race and we feel stressed and overwhelmed. So what’s the solution? Answer the phone.

Rather than taking the call as personal remember, the person on the other end is only doing their job. They cannot see you. They don’t know your story and you can feel safe talking without being judged. If you walk past a person on the phone tomorrow they wouldn’t know who you are.

When we talk to the people trying to collect, we often find out there are options to help. Whether that is making a payment plan, finding a way to get your debt consolidated or reduced, you can come up with a solution together.

Once you decide on a payment plan, stick to it and keep it a priority set the payments as minimal as you can. That way if short one month you don’t fall back on them anytime you have a few extra dollars put it towards your bill. This will pay down the principal faster and help recover your credit.

How to cut costs

Cancel subscriptions that you do not use or don’t need.

Extras such as renting movies or going to concerts can hold off until you get out of your debt.

Stay away from the mall, those little luxuries add up and are not doing you favors if you’re stressing about paying for them.

Cook at home. Not only is it healthier but it's cheaper.

Cut back on drinking alcohol and smoking. Perhaps it’s good 30 day challenge to start.

Live simple for a while do you really need hundreds of channels? Do you need your vehicle daily or could you carpool with a friend? Take a look around and see where you can possibly cut out expenses. It doesn’t have to be forever but a few months of really watching your money can help you get out of debt quicker than you realize.

Have a yard sale

Have you got items laying around that you thought about donating, have a yard sale instead. You will clear your space and raise extra money. Don't have space, list items online and sell them that way.

If you have a skill to offer, consider doing side jobs in your spare time. Cleaning homes or vehicles. Doing yardwork services, dog walking, anything can add up over a course of a month

Invest the time to work on what is needed. Follow through with goals and break the chains of debt. It pays off in your future!