Does your mailbox hold more bills than party invitations? Do you have more collection calls than phone chats with friends? Getting into debt is easy. With some guidance, getting out of it does not have to be difficult. Check out these four tips that will help you to take the reins on your financial future.
Find out where your money is going.
For the next month, maintain a log of your spending habits. Keep your receipts, even for small purchases. Seeing where each dollar goes will be an eye opener. You will be surprised how much your morning coffee habit and vending machine visits add up.
Ditch the debit card.
It is much easier to spend money when you aren’t holding it. Swiping your card doesn’t give you the same feeling as watching cash disappear from your hand. Use cash for purchasing groceries and gasoline. Each bill you turn over increases awareness that you can control where your money is going. This awareness is an important step toward reaching your money goals.
Negotiate for better interest rates.
Credit card companies have the reputation of unyielding bullies out to ruin your good name. They would rather work with you to get paid than face the possibility of no money if you are contemplating bankruptcy. Make the call and plead your case. Explain that a lower interest rate and fixed payments are good for both sides.
Consider saving less and paying off more.
We’ve grown up with the idea that it’s better to pay yourself before paying bills. Debt can follow you for years. Putting money toward that debt instead of into an extremely low-interest bearing savings account makes sense when you consider what you are saving in interest and late fees over time.
Starting down the right financial path begins with one step. Knowing where your money is going and taking responsibility are the beginning. Rebuilding your credit is also an important factor in reaching your goals. For people with any type of credit, buy here pay here dealerships in Phoenix AZ, like Drive Now, provide an easy choice for reliable transportation and simple payment solutions. Check out the selection and financing options available to you today.