Debt Reduction - The First Step Is The Most Difficult

By : Dave Cahill

Cashless shopping is clearly convenient and it there's no doubt it comes in handy whenever you don't have the cash to spare for those "unexpected" expenses or "must have" indulgences. Unfortunately, life is not that simple and just a few of those so-called must have impulsive purchases can, over time, lead to a huge credit card debt and eventually the piper comes calling. At some point, you must face the fact that you have to put the plastic down, exercise discipline and get serious about finding effective ways to reduce your debt.

If you're reading this, you are probably up to your eyeballs with all sorts of debt. Ignoring them is wishful thinking and whenever you think about it (probably daily) you ask yourself, "how did I get myself into such a mess?"

The good news is that you've made the most important step and that is you've realized that you need to do something about it. Reality has finally come crashing down. Of course, your debt will not just magically go away and so you have to find a good debt reduction plan in order successfully manage the payments without living like a pauper for the next 30 years.

As with any type of credit card debt solution, one must be able to have the guts to finally say goodbye to his or her credit cards and focus on whatever type of debt reduction options currently available.

The next step is that you must cut all ties with your beloved credit cards and get serious about debt reduction. Of course, the fact that you're reading this article shows you've done just that - congratulations. Incidentally, if you're like most, you probably have some grand plan on how you want to pay off our debt but as perfect a plan as it may seem in your imagination, playtime is over and you must focus on real world solutions.

You have to setup realistic goals when it comes to debt reduction - a realistic timetable of how much you'll be paying and for how long. You didn't acquire your debt overnight and you're not going to pay it off overnight either. It's important that your goals are manageable, as well as achievable. On the other hand, just because you're in debt doesn't mean you have to eat bread and water for next 10 years, cancel cable and buy everything at the Salvation Army just to meet your monthly payments.

There is certainly no need for you to torture yourself even more. What you clearly need is a good reduction plan and you can certainly achieve this if you cooperate with your creditors when it comes to finally fixing your financial life. And if you still want to keep a few of your credit cards active for emergencies and to help maintain a decent credit rating then that's ok. A good guideline on using credit cards is to keep two. Use one to buy gas and groceries but then pay off the balance each month and use the second one only for emergencies.

You should also set up a budget and track your expenses so you know exactly what it costs you to live each month an the setup a realistic debt reduction process based on that. You'll be amazed at how much you spend on frivolous and unnecessary items when you see everything in black and white.

A good budget will also help you stop buying on impulse since this where so many people usually use their credit cards. Before buying anything, you really must ask yourself over and over if you actually need this product. If it's just a luxury or want look at your budget and perhaps every 3 or 4 months you can buy a little something extra if it fits into your debt reduction plan.

In summary, I hope you've gotten some good ideas and useful information from this article that you will be able to put into practice and allow you to take control of your debt.

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