Debt. A Four Letter Word - By: Traderdog

The use of this four-letter word - debt - now seems to be on the increase.

Usually articles on this subject are "heavy", dry as dust with the facts difficult to understand. Although debt is a very serious subject, an attempt is made here to make it more understandable and hopefully, manageable

Debt is everywhere. Mortgage debt, credit card debt, hire purchase debt and so it goes on. Recession is upon us, and according to whichever pundit you care to believe, is likely to last from 6 months to two years. Probably the latter time scale is nearer the mark.

Not a prospect to fill the heart with pleasure. So, instead of being gloomy about it, what's to be done!

When money starts to get short - don't bury your head in the sand - you are a human being not an ostrich and trying to hide from the facts of debt will make matters worse. It is foolish to think that "something will turn up". Being realistic, it probably won't.

It is so important that you act and seek help before your situation becomes beyond saving. If you do not do this, you may well regret it for the rest of your life.

1. Is there more money going out than you have coming in? This is the main reason for your debt.

2. To overcome this, make a list of all your expenditure - even down to the last cup of coffee or bottle of lager. Tedious - yes. Necessary - yes.

3. Add up the total expenditure and subtract it from the total amount of your income. See the amount of over-spend.

4. Take a serious look at the amount of money you are spending on unimportant items and cut them out. Lattes, magazines, gym membership, Sky subscription, etc. etc. You will probably be able to do some serious pruning here.

5. If your credit/store card is the culprit, cut it up so that you cannot use it and settle the outstanding amount of debt. When this is cleared, ask yourself, do you really need a card that has caused you so much grief? Write to or telephone your credit card supplier(s) and cancel your card(s). You have now started dealing on strict cash terms, why not continue this way and stay debt free?

6. If you are in trouble with your mortgage payments, talk with your mortgage provider and see if it possible to re-negotiate your arrangement. Failing this, is there a bank of Mum and Dad that can help out for a while? Bear in mind that this loan must be repaid, as your parents will doubtless need their money as time advances. Don't sponge here - treat M & D as place of the last resort.

7. The same applies to any hire-purchase agreement you may have - talk to the provider and try to re-negotiate. Unfortunately, a car may have to be re-possessed. Just learn the lesson. Don't over-spend.

8. Food is an area where it is possible to cut out waste and unnecessary expenditure without compromising your diet. The same applies to clothing, motoring and holidays.

This is a very trying and a possibly depressing time. What is needed is some way that will enable you to see the light at the end of the tunnel.

If you are in a marriage or partnership and your other half is not working, is it possible to either seek a small part time job, or better still start a small business of your own? This is a very feasible idea and worth investigating. The main point here is that you work through this difficult patch together. You need to co-operate with each other.

There are many money-saving ideas, down-to-earth advice and FREE books - all with no strings attached - available at the web site http://www.save-money-guide.com You will probably find several ways to help put you and your budget painlessly back on track.

Above all - do not despair. Things should work out if you give it your best shot and seek help before your situation becomes too desperate - like NOW.

Wishing you every success.

About the Author

Traderdog is a writer who has been through a "cash shortage situation" and who took early action before it became a debt situation. Her web site http://www.save-money-guide.com is there to help with plenty of suggestions and free books just for the asking.

Article Directory Source: http://www.articlerich.com/profile/Traderdog/6505

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