When Debt Plays You Hard, What Now?

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Let’s face it—Life is tough. It is quite difficult for a lot of us to finance and pay for everything that we need in order to live a convenient life. This is why a lot of people get stuck knee deep in debt. All types of debt, whether it is a loan, a mortgage plan, or a credit card debt, will cause extreme stress in your life. If you have been quite careless with your finances before (if you haven’t, well, you wouldn’t be stuck in debt right now), you cannot afford to make the same mistakes again. This is why you need to make a move. After all, standing there on top of your debts will surely get you nowhere.

So, what should you do when debt plays you hard? Simple! You fight back, and with all your might may I ask. When the going gets tough, you should get tougher. Now is not the time for you to go soft on debt, now is the time for you to stand up for yourself and do the things you should have done before—protect yourself from debt.

If you wish to get out of debt (and I hope you are badly wishing it), then there are some tips and steps that you need to follow.

In order to settle a problem, one of the first things that you need to do is to acknowledge the problem. If you wouldn’t do this, then there is no way that you can find a solution to your problem. Actually, this is one of the most important steps to take—to accept the fact that you truly have a problem. Each and every day, tell yourself the fact that you are having problems with debt and for sure, things will sink in, in no time. After that it would be best if you will set aside a good one or half hour everyday just to settle your finance. Stick to it religiously.

The next step to take is to stop getting more debt. You are already knee deep in debt You do not have to add insult to injury anymore. As much as you can, try to stop spending money on things that you do not need. Try this for about a month and you will see how much difference it can make.

The following week, your next target is to make some cutbacks in your usual budget. This means you do not only have to let go of the luxury but you have to look for a way on how you can lessen your budget for groceries, gas, bills and many more.

Also, you will have to save up for an emergency fund on your fourth week. The money that you will deposit in this account are the ones that you have saved up from the last two weeks (from your cutbacks and luxury expenses). This emergency fund will come handy in the future, when the need for it arises.

On the fifth week, it is time that you face the music— do your inventory. No one likes doing this but it has to be done. Make a spreadsheet with four columns (first for all debts, second for the amount of each debts and third for the minimum monthly payment and fourth for percentage interest for each debt.) With this, you will get to know what is the minimum payment that you have to give each month.

Now that everything is organized for you, it is time that you make a plan about how you can repay all these debts. Remember that it is not going to be easy but hey, you took the first step already! How much worse can it get, right?

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About the Author:
Joyce is part of the team behind http://www.vaninsured.com/. VanInsured.com are one of the most versatile Van Insurance Online comparison services for quotes, we are dedicated to providing you with access to the best value quotes on the market today and in the future. You can be confident with VanInsured.com as we use the latest technology and security, and you will gain access to skilled and knowledgeable staff available to help you with any queries you may have regarding your policy.

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