Paying Off Your Debt

Paying your debts with money you already have and not having to borrow anymore money to be debt free.

You have too much debt. You owe everyone and you need a lump sum of money to get out of debt. But if you have no means of getting a lump sum, how can you ever reduce your debt? This is when you have to figure out a way to get out of debt with the money you already have.

The first thing to do is not to borrow any more money to get out of debt. This will only make you be in debt deeper. You might pay off some of the debt, but you will still have a debt. You want to become debt free. List all your bills that you pay each month and then list all the things you spend money on each month. You know you have to pay your bills for the month, but see what's not mandatory on the other list. If it is not a necessity like: dental expense, doctor bills, groceries or anything pertaining to keeping your household functioning, you don't need it.

Things like: clothes, nails, hair, movies and eating out are things you don't have to spend money on. This extra money you can work with. The hardest part is giving up all those extra things that have become a part of you. We usually feel we work hard and deserve these things and we do. But if your debt have you tossing and turning every night, you don't deserve that. You have to give to get. This is when you have to give up all those extra's to get where you want to be. The best way to do this is to set yourself a goal. Give yourself a certain amount of time for sacrificing all those pleasures in life. What you can do is give yourself six months of no extra things. Give up everything except the major necessities. No more movies, going out of town, eating out or clothes shopping. All the extras have to go for the next six months. Let your friends know you are going to be out of commission for awhile, so you won't be tempted. By doing this you will take all your extra money and apply it toward bills.

With paying extra money and your regular payments you will start to reduce your debt. You want to set a certain amount of time so you won't feel like you are just working to pay off bills. If you have a time limit this will let you know things can get back to normal once you have accomplish that goal you set. It is very discouraging if you feel you can never have and do the extra things you like to do. That's when you will slip off your program because you will start to feel like you have to live like this forever. If you set a short or long term goal, you know once you reach that goal time you can have your extra's back. Take the extra money and wipe out the smallest debt first. When they are paid off you will feel encouraged to continue on. You will also feel like this can really work. After you meet your six month goal, start back with the extra's for awhile. This way you can enjoy yourself and then set another certain amount of goal time to finish getting out of debt.

By following the following steps you can pay off your debt with using your own money you already have. You won't have to borrow money to get in more debt or use the excuse you are waiting for a raise or income tax check. You will be surprise at all the extra money you spend on unnecessary things that you can put toward your debt. Reducing your debt can be hard, especially if you have to give up all the wonderful things you like to do. But just think once you get to be debt free, you can do all those wonderful things again and add some new things to your list.

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