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Financial Preparation Can Get You Out of Debt
If you have loads of debt, then just like everyone else across the United States, you are probably are struggling week after week to pay your bills, let alone make any head away on your debts or save any money for yourself. Debt is perhaps one of the most complex and challenging situations that people face.
But take heart. If you do find yourself in difficulty you can take steps to prepare your financial arrangements so that you can actually get ahead. It is tough, even a little painful, particularly for people who like having all of the best things in life, but if you really want to be debt free then doing some financial preparation is the key to success.
The first step you need to take is to face up to your financial issues. You should never try to run away or hide from your creditors. In fact what you should do in this sort of situation is make a list of everyone you owe money to, work out how much you owe to each creditor, what you minimum monthly repayments are and then we each bill is actually due. The next thing you should do is contact each creditor and explain to them if you are unable to make the payment date. Ask if you can make several payments over several weeks until the payment is made.
If at all possible you should also try to pay more than the monthly minimum. If you only pay the minimum then you will never actually eradicate any of the debt, you will just being paying large amounts of interest every month. If how ever you can pay a little more (even $5 helps) then you are making some inroads to reducing the overall long term balance and saving yourself interest payments over the long term.
If you are having trouble saving money, particularly if you are trying to save money for an emergency situation here are some tips:
Stop using your credit cards and where ever possible, use cash to pay for groceries, bills and big purchases. Pay off your credit cards and when they are down at zero balance cut them up. This way you won't be accruing interest charges or credit card administration fees.
Whenever possible, make sure that you pay your home mortgage before it lapses into 30 days past due because this can cause you to attract a black mark on your credit report and also costs you additional and unnecessary interest.
Shop grocery sales (buy one; get one free) and stock up on your favorite items.