12 Steps to Immediate Debt Reduction

If you are in too much debt, you need to get out of it fast. You need some practical solutions you can use immediately to start reducing your debt straight away. And following are 12 simple steps to help lower your debt and take away the worry and hardship it brings.

Having too much debt is a terrible thing. Being in debt lowers your standard of living which is always ironic considering that we always create debt by buying things that we thought would raise our standard of living.

So what you need to know is how to get out of debt now, and the sooner the better.

Most people will tell you to make a plan of how you intend to get rid of your debt quickly. Well no doubt you already know you want to pay off your debts, but if you have no idea how to do this then the advice is worthless.

The following is a list of 12 simple solutions that, if used immediately, will help you to become debt-free.

1. Cut up your credit cards.
You’ve probably heard this advice before. But remember that “credit” is another word for “debt.” So cut those cards up now. No excuses. If you really feel helpless without a plastic card in your wallet then get a debit card instead.

2. Keep financial records.
Don’t wait till your next bank statement comes along and scares you. Keep your own written records of what you spend every day. This will help you to keep in control of your spending.

3. Downshift.
The less you buy the faster you can pay off your debts. Also the less you buy, the less you need to work to earn more to buy the things in the first place. Look for web sites that help you spend less such as selfsufficientish.com or cheapskates.com.au.

4. Eat more naturally.
Fresh food is so much cheaper than buying ready-made meals and other processed foods. It’s also healthier and less fattening. If you are not sure what to do with your ingredients, type them into the Google search box with a comma in between each one and Google will find recipes for you.

5. Don’t buy pets.
As delightful as they are, pets can be very expensive. Just having one dog will costs hundreds every year in food and thousands in vet’s bills for tick treatments, worm treatments, annual vaccinations, illness, dental care… and the list goes on and on. And it’s also expensive to kennel a dog when you go on holiday.

6. Use your library.
Books are great. You can learn a lot from them or lose yourself in a riveting novel. But books can also be expensive. So use your library and borrow books for free.

7. Don’t eat out.
Cafés and restaurants can be expensive. Even cheap meals cost a lot if eaten regularly. Spending $50 a week on a restaurant meal once a week is $2,500 a year. Even having a harmless coffee every day can cost over $1,000 a year. So make eating (and drinking) out a treat now and again and not a regular occurrence.

8. Take away the take-aways.
Gather together all your take away menus that you have stashed in a kitchen drawer and throw them away. Home cooking is far healthier and a lot less expensive.

9. Eat seasonally.
Fruit and vegetables are far cheaper to buy when in season. So don’t go buying expensive tropical fruits from another country when your country is in winter. Wait till summer and then buy the cheaper version from closer to home.

10. Buy used.
It’s always much cheaper to buy things second hand rather than new. Electrical items should always be bought new (it’s safer and you get a warranty) but clothes, toys, furniture and everything else can be bought at bargain prices. (But only buy things you REALLY need.)

11. Furniture restoration.
Cleaning up and restoring old furniture can not only save you money, but can also be very rewarding if you can buy an old, cheap piece of furniture and work on it till it looks like new, it gives you a flowing feeling of job satisfaction. Your library will be full of useful books on this subject or your local college may have courses.

12. Learn to sew.
Being able to repair clothing or upholstery can a time saver as well as a money saver. It’s far quicker to repair something than to have to go out and find a new one. So learn a few sewing techniques or see if there is a local upholstery course being run in your neighbourhood. A stitch in time really does save.

So there you have it. Follow the above 12 strategies and you are guaranteed to become debt free.

And then the next step is to get on the road to wealth.