Debt has been a part of each of us. It could be in a form of some deeds, our natural debt to nature and society or most often than not, as majority of us, it is in the form of financial debt due to different reasons.
Speaking of monetary debt, it is no new concept to us. Almost, if not all, has this sort of debt. Consider delving in and you will be surprised as to some of the amounts from a couple of hundred dollars to an unimaginable amount bigger than how you are earning.
Carrying a financial debt is both draining financially and mentally. Fortunately, you can lower your pecuniary obligation and not have to suffer the effect of it. Intially, go over your finances and start with your cashflow. Cash flow is the in and out of your finances. Also, include all your accumulated debts.
Brace yourself for any shock it will cause you since this is the first time you are writing down everything. You will be sober the very least. It will be an eye opener and awakening which of those expenses you have listed can be cut down or totally eradicated.
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For example, why spend for a $4 Starbucks coffee if you can have a regular coffee for only $1? You have $3 savings. It might not affect that much but if you drink coffee 5 times in a day, a total $15 savings equates to about $450 a month. That is some amount of money you can cover for debt especially your credit cards.
In terms of credit card debt, refrain from paying only the minimum amount per month if possible. Consider paying more so you can also diminish the principal thus lowering interests and finance charges, as well. It will be better if you can unify them into one low interest account. Perchance, you should also think of eliminating a home mortgage loan to pay off the debt so that you will only have one debt to pay at a lower interest rate.
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