| u lay awake at night wondering how you are | | | | each one and determine how much of your |
| going to manage to pay your bills this month? If | | | | monthly payment actually goes to pay the |
| so, you are not alone. Many people have high | | | | interest. You can make a start in paying off these |
| levels of debt and are just managing to pay their | | | | cards by making a higher payment each month. |
| monthly expenses when they receive their | | | | Even a small amount added to the payment will |
| paycheck each month. Although you know that | | | | reduce the balance because everything you pay |
| you have fixed payments each month, such as | | | | over the interest does go towards the unpaid |
| the mortgage and car payments, you may also | | | | balance. Start with the bill on which you owe the |
| have other debts such as credit card payments | | | | least amount. As you see the balance going down, |
| that change from month to month, you need | | | | it makes it easier to make the sacrifice of paying |
| money for groceries and then there are the | | | | more each month. When you have this bill repaid |
| expenses of clothing operating a vehicle and | | | | in full, instead of using the money to go back to |
| leisure. | | | | your old habits, you now have an extra amount |
| The first thing you should do is prepare a budget | | | | of money to apply to the bill with the next |
| of the amount of money you have coming into | | | | highest balance. Since you will probably be making |
| the household and list of your expenses. You do | | | | double the amount of the minimum payment each |
| have to make sure you include everything so that | | | | month, this bill will be paid off rather quickly. |
| your list is a complete as possible. Don’t | | | | If you have an overdraft on your checking |
| forget to include such things as eating lunch in a | | | | account, try to clear it so that you do have |
| restaurant or going out for dinner on a regular | | | | money available if an emergency crops up. If you |
| basis. By subtracting the expenses from the | | | | are always at the limit of the overdraft each |
| earnings, you will have a clear idea of how much | | | | month, even the smallest transaction will push it |
| leeway you have in the money you have left | | | | over the limit. This means that the bank may |
| over. | | | | return your check leaving you with having to pay |
| Scrutinize the money you have going out each | | | | the amount immediately along with high fees. |
| month to see where you can make cutbacks. | | | | Even if the bank does allow the transaction to go |
| This includes cutting back on such things as eating | | | | through, there will be high fees added to your |
| at restaurants; you can save money by taking a | | | | account, leaving you with less leverage in handling |
| lunch to work with you, which could be something | | | | your money. |
| left over from your dinner the evening before. If | | | | If you are unable to make even the smallest |
| you spend a lot of money in gas by driving to | | | | addition to your payments to start reducing your |
| work each day and then have to pay for parking | | | | debt, you can benefit from a debt consolidation |
| consider carpooling with your colleagues or taking | | | | loan. If you own your home and have a |
| the bus or train instead. If you live close to your | | | | considerable amount of equity built up, then you |
| workplace, you can also become more fit and | | | | can also benefit from taking out a homeowner |
| healthy by walking to work when the weather is | | | | loan and using the money to pay off all your |
| suitable. | | | | debts. The result of using one of these types of |
| Do you spend an amount of money each month | | | | loans is that you combine all the payments into |
| in magazine subscriptions that you don’t | | | | one monthly payment that is often considerably |
| really need. You can cut back your expenses by | | | | lower than the combined payments you are |
| canceling these. Many of the books and magazines | | | | making at the present time. Then you do have |
| you receive through subscriptions are also | | | | money to work with for other things at the end |
| available at public libraries and it doesn’t | | | | of the month. You will also reduce the amount of |
| cost anything to have a library card. You will be | | | | interest you pay on the loan because banks |
| amazed to find that even these small amounts do | | | | charge a much lower interest rate than credit |
| add up over the course of a year which when | | | | card and finance companies. Keep a close eye on |
| you eliminate them, gives you more money to | | | | your finances and take the necessary steps to |
| put towards paying off your debt. | | | | reduce your debt and you will have a more |
| Now it’s time to turn your attention to | | | | positive outlook about everything. |
| your debts. Look at the interest rate charged on | | | | |