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Credit Tips

Bad credit can lead to multiple issues in our life so we've dedicated this blog to help our users improve this part of their life. 

Steps To Take To Eliminate Debt

The stress of debt can be toxic.  It can make relationships difficult, it can negatively impact your health, and it can hurt your future.  One thing that makes getting out of debt difficult is the overwhelming feeling it can create.  But, if you don’t make the effort to eliminate your debt, you will never do so.

Steps to To Help Chip Away At Your Debt:
 

  1. Organize your financial situation.  This means that you learn how much you owe and how much you spend.  You need to know if you owe $1,000 in debt payments each month and if you spend that much or more for necessary and/or unnecessary goods and services.  Debt organization help you know what subsequent steps you’ll need to follow.

  2. Evaluate your income, then compare it to your expenses.  Collect a receipt for every purchase you make every day.  Then, evaluate to ensure your salary will allow you to pay off your debt while still paying “regular” bills for food, utilities and similar needs.

  3. Decrease your spending.  If you collect all of your receipts—or make your own detailing of where every dollar goes, you can find out where your money is going.  Five hundred dollars for gourmet coffee?  That isn’t uncommon, but if you want to get out of debt and be able to spend some of that hard earned money on the things you really want or need, then change that habit.  Most of us can decrease spending—we can drop cable television, or we can walk to work, or we can do something that might be less convenient, but will save us money.  Find out what that is for you and follow-through.

  4. Create a debt repayment plan.  Decide how much more you can pay back each month by decreasing spending and maybe adding some income.  Once you get in the habit of saving money, you might be surprised at how easy it becomes and how quickly you want that debt to go away.

If you are still struggling and you need help restructuring your debt, or even filing for bankruptcy, contact the Welke Law Firm.  We can help you find the best solution to ease the heavy burden of debt.