It is a very overwhelming feeling when you realize that you owe all this money! I have listed several steps to help you dig yourself out of debt. It is a start and you need to make the effort to begin.

“The mint makes it first, it is up to you to make it last. “
Evan Esar (1899 – 1995)

Here are the steps to help you start digging yourself out of debt and achieve other dreams you may have.

At first you need to gain control over your spending.

• Start today. There is not better day than today to get started.
• List your obligations.In order for you to know what you rally owe you need to make a list of your expenses. List everything you pay! Do not leave out anything.
• Begin tracking your expenditures. By keeping a close eye on your purchases, you can determine which are needs and which are wants. You can then formulate an action plan to reduce any unnecessary expenditures. This will free up money to pay down your debt.
• Set spending priorities. Make sure you spend to serve your life goals instead of just paying off expenses as they occur. Set aside money first for debt repayment and then budget for things such as saving for college or retirement. Do this before spending on discretionary items.
• Leave your credit cards at home. Surveys done by Consolidated Credit Counseling Services indicate consumers are likely to spend more using a credit card than when paying in cash. Also, closing credit card accounts can help you resist the desire to overspend by restricting your credit limit.
• Pay more than the minimum payment on your loans.
• Try to negotiate a better deal with your lenders. If you’re feeling overwhelmed, don’t be afraid to ask your lenders if they are willing to lower their interest rates or reduce your required monthly payments to help you get back on track. They are more willing to work with you rather than having you file for bankruptcy

This information is not to be considered financial or legal advice. This information comes out of personal experience and I am not a financial adviser, CPA or attorney. For additional information on how to deal with your personal debt please consult your personal financial adviser, CPA or attorney.

For any real estate information and consultation feel free to contact the Settles Team.