Summer is the season to get back in shape for wearing the bathing suits. It is the time to dip into the swimming pool to keep yourself cool. However, it is not easy to shed extra pounds and become physically fit. Likewise, it is quite tough to shed your debts and become financially fit.
If you exercise regularly and control your diet, then you can easily wear different clothes. Similarly, if you can follow a good financial routine, then you'll be able to pay off your debts and become financially fit. Read along to know about some steps which can help you reduce your debt load.
Steps to shed extra debt load
Here are some steps to become financially fit by reducing your debt burden.
1. Set a realistic and achievable goal: You can't shed 30 pounds within 7 days. Likewise, you can't reduce years of debt within 30 days. It will take time to pay off your debts. Don't get apprehensive. Find out where you stand financially. Weigh your credit card balances, education loan amount, and other debts. Calculate the amount you can pay in a month or year. Thereafter, set up a goal for yourself.
Start with your smallest debts first. Pay off the balances on your smallest accounts. Once you get psychologically motivated, take care of your other debts.
2. Change your outlook: Do you love to a grab a pizza whenever you go to a market? Do you love to spend money after getting your paycheck? Do you love to browse through the shopping websites in your free time? If yes, then you need to change your attitude soon. You need to look at your credit cards in a different manner. Look at credit cards as risky but important financial tools. You'll benefit if they are used properly. You'll face a lot of problem if you misuse it.
You'll have to pay the bill after all the purchased goods have been delivered to your house. So, don't whip your credit cards whenever you visit the market. Paste a paper on your credit card. Write down your debt amount. Whenever you see this paper, you'll feel less inclined to use the credit card.
3. Learn to use plastics wisely: You can't possibly live your whole life on credit cards. You'll have to learn the ways to lead your life without depending upon the credit cards. Use credit cards to build a positive credit history. Pay the credit cards in every month. Use cash to buy anything. Have restraint over your desires.
4. Give up unnecessary expenses: Empty calories don't do any good to your health. Give up unnecessary expenses. You don't watch all the channels in your television. If you don't watch all the channels, then what's the point in paying for them? Change your cable subscription or skip cable only. Give up gym membership and exercise at your home. Lower your cell phone bills. This is called the art of frugal living.
Every individual loves to relax during the week ends. They want to go out with their friends and have a drink together. There is no harm in doing it as long as your finances don't get hurt. If your friends love to party every day, then you need to skip a few events. Avoid friends who love to splurge money. Remember, you're in debt. You can’t afford to waste money. Try to spend minimum amount on entertainment.