How exactly did you get into debt anyway? Was it from buying too much stuff? Were you living beyond your means? If this is you, I have an entirely different approach for your situation!
If your debt is due to an over need to shop, the first step is to stop using credit. If your middle name is shop-a-holic, or if you just can’t resist buying the next cool thing… you should not have even ONE credit card. This sort of addiction can cost you. Cut up all your cards now!!
Once you stop the bad habit, the next item is to get yourself out of debt. Once you break this nasty cycle and pay off your debt… you might actually have enough money in your budget each month to start affording a few extra items or splurges. Right now, you are mostly throwing that opportunity away in interest.
Now… let me warn you… my next piece of advice is going to be tougher than my first. You will need to sell your stuff. Yes, you heard me… sell it. Everything that you bought on credit needs to go… now. You should have never bought it to begin with. You need to sell it and pay off this debt.
Cars, boats, clothing, toys, furniture and more can easily be sold for cash. I highly recommend a website like Craigslist for larger more expensive items. Use eBay for smaller valuable items to try to generate the most from auction. If you have a bunch of smaller items, a garage sale might be worth your time. While they tend to be a lot of work, if you are selling a bunch of great stuff you just bought… you are sure to turn a nice profit.
Then, once you have all this hard-earned cash… pay off as much of that debt as you can. Buy it back down and then finish it off with your monthly budget. Once you are free of this burden… you will then be able to start practicing the art of saving for your shopping sprees. You might even discover you didn’t need that item all that much anyway!
Related Articles:
*DIY Debt Reduction – Multiple Creditors
*DIY Credit Card Debt Reduction