Debt Service Uk

Posts Tagged ‘Diet’

Do you sometimes feel like you’re making a lot of sacrifices to live debt free? Debt free living is easy if you don’t have any debt. But, living debt free and working to eliminate debt, at the same time, can be a struggle. It can feel like you’re always giving up what you really want to meet that goal.

Sometimes we can’t help but get discouraged. Our desires and wishes get the best of us from time to time. But, it seems to me that things always work out for the best if you just hang in there a little longer.

On a diet commercial the other day, they said that all cravings pass within about 15 minutes. If you can just hold off for those 15 minutes, the craving will pass. I’ve found this to be somewhat true with impulse buying. Justification of a non-purchase takes about 15-20 minutes and the urge to buy goes away. Let me tell you my own experience.

I’ve been wanting a front loading washer and dryer set ever since they become popular styles for the home. Each time I go into a store that sells them, I stand and gaze at the beautiful pieces of machinery and even go so far as to compare prices. But, even at the low end, a set of these machines will cost you about $1600. I couldn’t tell you how many times I almost approached the salesman about that “easy pay plan.”

Each time I hesitated, and after about 15 minutes of thinking about it, I would walk away. I would tell myself that the purchase wasn’t necessary right now. Besides, my antique washer and dryer were still working by some miracle . And, I didn’t really need a set that cost $1500 when I could get a perfectly fine washer and dryer for about $650, when I “really” need them.

Talking yourself out of a purchase is hard when you’ve been talking yourself into them for so long. Justifying a non-purchase for the cause of living and becoming debt free is well worth it. I have about four years to go before I see zero debt. After that, I can save enough to buy any washer/dryer set I want in as little as two months, based on my current debt payment. By then, my tastes and the styles may have changed.

I got my new washer and dryer. They aren’t front loaders and they aren’t “new.” But, they are new to me. During a remodeling project, a friend discovered that the machines they had would not be accommodated in the space and decided to invest in a new stackable set. They are less than five years old. Less than 1/4 the age of my current set (which wasn’t even a matching pair), and in great condition. We acquired both for a total of $150.

I’m happy with the purchase. It satisfies my goal to become debt free and saved me money. It’s a debt free purchase I can live with! Now, I don’t have to worry about getting stuck without a washer or dryer. The old ones were getting temperamental and it was obvious that the day of retirement was nearing for both. Living without a washer and dryer is just not practical with a family of six.

Living to become and remain debt free is often a challenge in a world that’s credit card crazy. We live with constant exposure to credit card debt “pushers.” If they can’t get you at home, by mail or TV commercial, they get you as you walk in the door of the store and at the checkout.

When you want something and you happen to stop and look, just remember the 15 minute non-purchase theory. Walk around and justify not making the purchase for at least 15 minutes. That’s long enough to talk yourself out of it and save the day. You’ll save money and stay true to your goal to become or remain debt free!

Dealing with ones finances is never easy, especially when you have a debt problem. A debt problem is created when you end up spending more money than you spend on a consistent basis. It is certainly possible that one might be forced to operate on a negative cash flow for a short period of time, but if you are unable to turn it around by increasing your income and/or cutting your expenses then having a debt problem is inevitable. Some simple steps can be followed that will help you get your finances back on track and out of the red.

1. Spend Less Than You Make

Financially savvy individuals do not spend everything they make. At the top of their financial priorities is savings. These people are wealthy for a reason. They didn’t spend every last dime they made. Don’t overlook this principle.

2. Make a Budget

The first step to eliminating your debt problem involves creating a budget. A budget is a lot like a diet – neither does you any good if they are not followed. When creating your budget you should map out your monthly cash flow. The cash flows will include both your expected sources and uses of money, also known as your income and expenses. If you do not have a good understanding of where your money is coming from and where it is going you will never be able get on top of your debt problem. Thus it is also important to implement a budget as a tracking mechanism. You should record and track your expenses each month.

Towards the end of each month you should analyze your financial situation. Did you spend more then you made? Where were your biggest expenses? Can these expenses be curbed? As you are analyzing your budget, you have to look for the fat that can be cut away. For instance, if you find you spent a lot of money eating out then you can easily curtail that habit and eat in more. That will save you money and help your bottom line. Your budget should be repeatedly reviewed and fine tuned in this manner each month. Slowly but surely you will notice your monthly expenses decreasing below your monthly income level, creating some extra income.

3. Form a Debt Repayment Schedule

e you have created extra income, you can begin to address your debt problem. Typically you will want to apply your excess money to the highest cost debt first. Say you have debt on 3 credit cards with rates of 20%, 18%, and 12%. To begin with you will want to pay the minimum monthly amount on each card, and apply all the extra income you have each month to the highest rate card (20%). Once you have paid this card off, you will then take the monthly minimum amount you were paying on the 20% interest rate credit card plus the monthly surplus of money and apply it to the next highest interest rate card (18%). Continue on till this card is paid off, and then do the same with the last card.

Make Saving a Habit

When you have paid of your debt problem the next step is to begin saving your extra income. At this point it would be wise to begin taking the amount of money you were applying to your credit card payment and put it into savings. You can continue to live the lifestyle you have grown accustomed to as you create a nice little nest egg for yourself. The key to saving your extra income is being disciplined, and making saving both a priority and a habit.

As you probably know financial stability is priceless. If you want to avoid a debt problem then you must remain in control of your spending habits, ensure that you are saving money each month, and continue to work hard. Overcoming a debt problem isn’t always easy, but it can be done with hard work and discipline.