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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