Friday, July 27, 2018

TAKE ACTION TO GET OUT OF DEBT

Consumer debt stands at $3.898 trillion in May 2018. Households have incurred more
debt than at any time in history. Sadly, financial institutions
continue to encourage easy credit. It's time to take responsibility for your
debt and take action to get out of debt.

Commit to a budget. Know where and how you are spending money. Start by
recording all expenses and retaining all receipts for three months.
Avoid future debt. Say no to new purchases. Avoid impulse buying. Don't
even go to stores, especially malls. Throw away catalogs. Don't buy now
and pay later. Eighty-six percent of those Americans who have
voluntarily cut back their consumption say they are happier as a
result.
Pay off debt systematically. Make a plan and stick to it. First, list
all debts in order, from the smallest to the largest. Second, pay at
least the minimum payment on each debt each month. Third, double
payments on the debt at the top of the list whenever possible. Fourth,
as each debt is paid off, apply that payment plus the minimum payment
toward the next debt.
Dispose off credit cards. Cut them up. Have a ceremony and burn them in
the fireplace. Don't try to modify credit card habits -- quit cold
turkey.
Develop an accountability network. Find another person or group and
discuss expenditures at least once a week.
Make spending need-based. Most purchases are desire-based,
interest-based, pleasure-based, or cash-flow based. Just because you
get a raise or a hefty tax refund is no reason to increase spending. To
determine if it is a need, don't buy on first impulse. Wait. Think about
it for a day or week. Pray about it. If it is a clear need, there will be
no ambiguity.
Develop self-sufficiency. Learn to change your own oil. Grow some of
your own food. Sew some of your own clothes. Learn to cut hair.
Integrate lifestyle simplicity and contentment. If you are content with
the things God freely gives you, expecting little and rejoicing in
whatever comes your way, debt loses its fangs.
Move down. Consider moving to a smaller home, or a cheaper car, and
live a simpler life.
Let appliances die in your arms. Wait until it's dead before you
replace it.
Stop venerating automobiles. Learn to see cars as transportation, not
status symbols.
Simplify your meals; eat out less. Discipline your taste buds to accept
simplicity and healthful foods. Your wallet and your body will thank
you. Eat at home.
Shop for good deals. Decide not to pay full price unless necessary.
Shop thrift stores and garage sales.
Simplify Christmas and birthdays. Begin now to notify extended family
of your decision to cut back on gifts. Make gifts or choose more modest or
fewer gifts.
Enjoy free activities. Use your library for books, magazines, and
videos. Read instead of going to the movies or shopping. Work on a
hobby. Take a walk.
Use debt as an opportunity for growth. If debt has beaten you down, why
not learn from the experience?
Change your measuring stick. Money is not the measure of all things.
Remember, you live in a society, not an economy.

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