In today's economic climate, it seems that most everyday Americans are finding it more difficult to make ends meet. The cost of living is rising but wages are frozen and redundancies are common.
Everybody knows that it is a real positive to be pro-active and gain more financial security but how can you find ways to pay off your debts?
Firstly, gather all your paperwork together and calculate how much debt you have and the interest rates you are paying on these loans. Use a loan calculator to find better alternatives.
Then look at your expenditure per month and divide this into two categories, fixed and variable. Fixed expenditure includes costs such as rent or mortgage payments that stay the same and cannot be changed easily.
Variable costs include all those items that you enjoy but in all honesty, could live without. This category could include expensive gadgets and games, the latest fashions or designer ware. Input the cost of these into the loan calculator and see how you could benefit if you used this money to pay off debts.
Whilst it may be lovely to have these things, know that it is even better to pay for them without being in debt. So for now, make a sacrifice to stop purchasing these items.
At the same time, make a promise to yourself that when you are free from debt, you can have all the treats you can afford with your new found disposable income! This should give you some motivation to work towards that happy day. Use the loan calculator to help you estimate when this day will be for added motivation!
Next, look at your food bills and think of ways to reduce these costs. You can save money by only having takeout food or dining in restaurants on rare occasions.
At other times, it can work out cheaper to buy cupboard staples in bulk. Milk, for example, can be frozen, so if it is on special offer, stock up on cartons.
The same goes for toiletries and washing products, which we always need throughout the year. For even more savings, buy the store's own brand labels rather than branded goods.
Join online websites that detail where to find coupons for money-off when shopping. Get a cookery book and begin making batches of hearty soups, casseroles and stews.
Buy lower cost cuts of meat, such as braising steak, that taste delicious when cooked in the oven for a couple of hours. You can also fill out meals with beans and lentils.
Remember how our grandmas would turn nothing into something? Be the same! Make do and mend, whether it is food or clothing. Use dinner leftovers for the next day lunch and repair clothes when they are damaged.
You will probably start to enjoy the challenges and rewards of living in such a prudent way. With the excess money, you can pay off debts more quickly and feel satisfaction as each payment is completed.
When you need a break, websites that offer deals such as Groupon and Living Social can provide a low-cost way of enjoying a special meal or occasion.
There is nothing better than the feeling that you are taking control of your debts and money. So take up the challenge and start creating a happier, healthier financial future today!
