Debt has become a major problem in many countries throughout the world. In fact, financial debt is now a major concern for many millions of people. Options do exist to help, but to get help you must be willing to take the steps necessary to help yourself. You need some form of debt relief immediately. Reducing, and ultimately eliminating, your financial stones around your neck will create greater personal freedom and a huge amount of stress-free living.
Make a conscience decision to keep these simple rules in mind:
Rule #1 - Do not let panic over the situation rule your actions. Acting rashly can, and does, often put you into an even worse predicament.
Rule #2 - Create a budget for yourself by adding up all your income, payments and expenses. This will help you become aware of where exactly all your money is going. If you do not really know, how can you fix the problem? In addition, your newly created budget will highlight all the small, unnecessary expenses that you can eliminate.
Rule #3 - Cut the credit card purchases. Introduce a new-found habit of paying cash for the items you really want or need. If you do not have the cash on hand, start a savings toward that purchase. Do not go into debt for "toys." A car is not a toy, but also purchasing one out of your price range (even if they make the financing "work" for you) is foolish. Carry small amounts of cash or a debit card (not a credit card) with you at all times.
Rule #4 - All spare cash you have should be put towards a debt relief fund. As it grows, this fund will help you to clear other debts. Remember each time a debt is paid off, and cash is freed up, use that free cash toward your next major financial debt. Think "rolling snowball." The cumulative effects can and do work quickly if you stick to your budget and your plan.
Rule #5 - Explore all of your options first. Sometimes when the debt is large, people decide to refinance their homes to help pay off their debts. However, this does not eliminate the debt, but merely change it into yet another form of debt. For some, this is a sensible move; for others, it can be disastrous. If you do not know, seek assistance.
Rule #6 - This is actually an extension of Rule #3 above. Never be tempted to withdraw cash from one credit card to pay toward another (or any) debt. Again you are not fixing a problem, merely adding more debt and confusion to your problem.
While the rules above are just guidelines to get your financial affairs in order, seeking out professional help is highly recommended. If you find yourself merely purchasing for the sake of buying (and still have cash on hand), stop. Put it toward a sensible retirement plan; yes that day will come faster than you can imagine.
If you are continuously short of money daily, weekly, monthly, you most definitely need to find a financial advisor.
The process for clearing one's debt is not the same for everyone. One size does not fit all when it comes to debt elimination. However, sitting and doing nothing as your bills mount is never, ever a solution. Make your decision to help yourself today and your tomorrow will be much brighter.