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Date Created: 12/21/15
Steps to Live a Life of Great Peace Staying out of debt is not an easy task. You are reading this article because you have already a fair amount of debt and thinking about how get out from under it all. Learn how can stop increasing new debt and change your life forever. 1. Stop to increase your Debt: If you have one and more than one credit cards that are maxed out, cut them in half. Also cut up any other cards such as gas cards and department store card etc. you will use only one credit card to buy "emergency things" that you know you will be able to pay off until you get full control over your spending. 2. Keep record of all your Spending: An idea of writing down all you're spending is a concept most people find it best and others useless. But this is an actual key to getting out of debt. You are in debt because you spent money which you did not have. Avoiding more debt, starts with write down every penny you spend each day for at least one month, no matter how small. 3. Give Categories to all of you’re spending: After maintaining the record of your all spending; categorize it into three logical groups of "Must have", "Should have", "Like to have". "Must have" are things such as food, rent and medicine etc. "Should have" are things which you need but can manage for a little while such as clothes. "Like to have" are things that you don't need and do live without it such as newspaper, TV and coffee with friends etc. 4. Figure out your new budget: Look at your new budget, now you can see areas where you might be able to cut back. Make a note of your spending Day-to-Day; this will give you a very clear idea of how well you are doing. If you know that you are going to over of your budget then it may help you to hold back on a purchase. 5. Figure out how much you owe: Debt can often feel overwhelming so gather your bills and make a simple spreadsheet of all your debts including name of creditor, total balance, monthly payment and interest rate. 6. Start paying it off: Now prioritize your debts and pay off each debt in your priority list. As you pay off convenience cards, call credit card companies to cancel those accounts. 7. Never give up: There are chances that you did not get out of debt but learning about how to manage your money can bring a great peace into your life. “Consolidation Loans” purchase all of your debt so that you can make one payment to them. This can allow you to get a lower interest rate than what you are currently paying as well as to simplify your life by getting just one monthly payment.
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