Many people during these trying times are drowning in debt. In fact, if what I heard is true, Americans owe as much as $2.5 trillion. That is a huge amount of money!
Families however, need to do what they have to do. I’m so grateful and consider us very lucky for now, because I can honestly say that we don’t owe anyone a penny (not even a mortgage), except for the monthly recurring bills incurred to maintain our lifestyle (cable, phone, etc.). The worrier that I am, if we were to get hit with the same burden right now, I’m sure I’d be needing the best wrinkle cream that our money can buy.
Seriously, how can someone climb out of debt if there is no source of income? That is tough! But there’s also a large number of people who are in debt due to misuse of credit cards and the like.
For the second group of people I mentioned above, here’s a few tips on how to climb out of debt:
- face up to what you owe. be honest! know that financial solvency starts with fearless honesty. start tallying every dime that you owe.
- go on a cash only diet. do I need to expound?
- try to repay aggressively.
- track where your money goes.
- follow a “no excuses” strategy and do whatever you can to get out of debt.