Personal debt is a massive problem. According to recent studies, almost one in five people have run up a debt of more than $10,000 on credit cards, overdrafts and hire purchase agreements. That is more than 8 million people. If you have personal debt, then debt consolidation or credit counseling are the best ways probably to diminish or even eliminate your debt.
Mentioned below are the simplified tips for the achievement of personal debt relief and protection of yourself in this trying time of a questionable economy and the rapidly increasing cost of living:
Formation of a budget may at first seem rather simplistic, but you may be shocked at how many people have no idea what their monthly expenses are, including all of those extraneous expenses that we usually don’t factor into the equation. At first, the necessities ought to be listed, which are housing, food, utilities, and car payments. Next list the variable costs, which would be those things that aren’t a set amount each month, such as cell phone bills and miscellaneous expenses. Entertainment costs ought to be saved for last, and only if there’s anything left for such luxuries.
As known to all of us, emergencies do occur, and of course, usually at the most inopportune times. Right at this very moment,
- What would happen if you got a flat tire on your way to work? Or,
- What if the roof started leaking? Or,
- What happens if all of a sudden, the furnace stops working?
Without having some funds set aside for a rainy day, or the inevitable emergency, it’s improbable to break the debt cycle. Some of the money you have shared off your entertainment expenses are perfect for socking away into a savings account and forgetting about until it is need sincerely.
Whatever it is, it doesn’t matter how you got here. Debt Academy is here to help you find answers, implement solutions and help get you out from underneath your debt so you can breathe again.