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Written by Cameron Daniel
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Friday, 02 November 2007 |
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Word Count: 525 Debt Problems? You’re Not The Only One!
If you are struggling with debt problems, you are not alone. More and more
people are getting into debt every month by spending more than they are earning.
It is a simple fact, but one that has caught out many thousands. The solution
should be an easy one: Stop spending! The fact is, though, that it isn’t as easy
as it sounds. Many people just aren’t aware of the seriousness of their debt
problems. Many couldn’t even tell you what their credit card balance is – they
never even open their statements. Does this sound like you?
If so, you are following a path that has been carved out by many others before
you. This route only leads to one destination – serious debt problems! Learn
from their mistakes before it is too late. The chances are you can still turn
your situation around by taking control and making a budget.
Start by opening those credit card statements. Prepare yourself for a shock, it
is likely to be a lot more than you expected. Don’t let this dishearten you
though, write all your debts down and give yourself a clear picture of your
financial situation. This is the first step to gaining control.
Now you need to work out what you have coming in. This can be your salary, any
overtime, benefits and any other regular form of income. Write it all down.
The next step is to make a list of all necessary expenditures. Things you NEED,
not want. Things you need are a roof over your head, so your mortgage or rent
payments should be included. You also need power, heat and running water so
include your utility bills. Don’t forget to eat; work out your monthly food
expenses. Other necessary expenditures could be nursery fees, transportation
costs, insurance policies and council tax payments. Things you don’t need are a
new pair of designer shoes, a meal out at a swanky restaurant & tickets to see
your favourite band. You do need clothing but be sensible.
Whatever you have left over, use to pay off your debts. It is usually
recommended to leave 5% for emergencies. These can arise at any time and having
a fund for such things can relieve a lot of pressure.
If possible, leave some to save too. This can be rewarding when you eventually
save up for something you want and buy it with money you have, not on your
credit card! By knowing exactly what your financial situation is, you can take
control and plan, instead of making impulsive purchases.
If you are already too far down that road, you needn’t worry either. The fact
that many people have already gone down this road and come out the other end
should fill you with confidence. There are solutions available to most debt
problems.
To find out about these solutions and to get more free debt advice click here. You can also find out how self-help could be the answer by visiting the DIY Debt Help resource.
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