Eliminate Your Debt Monkey

Credit Counseling Services Help you Avoid Bankruptcy

You’re in debt.

Like many other people, you may not be exactly sure how you got here.  Maybe you are a recent college graduate with an ample amount of student loans.  Or maybe you’re a single parent who has just been laid off due to the difficult economic times and are having trouble making your mortgage payments.  Maybe your frivolous credit card spending habits are beginning to catch up to you.  Whatever the reason, having a debt monkey on your back can wreak havoc on your social life, health, stress levels and your happiness.  However, enlisting the help of a credit counseling company and following a personal budget and a few guidelines can help you get rid of your debt monkey forever.

• Don’t spend more than you have.  Work out a personal budget for yourself.  Add up your monthly expenditures and total up the necessary expenses you must pay on things like health insurance, car payments, rent, mortgage or food costs.  Once you have this amount, make sure that it does not exceed your income.  If it does, look for places where you can cut costs.  Can you trade your car in for an older, cheaper model that will give you a lower insurance rate and better gas mileage?  Can you stop buying processed snacks for your family, start using coupons or grow your own produce?  These methods may seem inconvenient at first, but they will help you save money over a period of time – and help you get rid of that debt monkey.
• Pay the high interest loans first.  Mortgage payments and student loans generally have the lowest interest rates.  Pay the minimum on these types of loans and tackle your high interest credit card payments first.
• Write down everyday expenses.  Record every purchase you make.  From a daily $3 cup of coffee to filling your car’s gas tank, these small costs can add up.  Of course, some expenses are necessary.  But many are not.  Spending $8 on your lunch break during the work week can add up to $160 a month.  You can easily identify unnecessary costs by keeping track of everyday expenses. 
• Set small goals for yourself.  You didn’t get into debt overnight, nor will you get rid of your debt monkey quickly and easily.  Take your time, don’t become impatient and set small, specific goals for yourself.  Aim to pay $50 over your minimum credit card payment every month.  Or sacrifice dinner at a nice restaurant once per week and save $40.  Every little bit helps.   

Getting out of debt isn’t easy.  Employing a few smart, money-saving strategies and obtaining credit counseling can help you get rid of your debt monkey.