- Personal Finance
You Can Get Rid of Debt Series - Part 3
You are well on your way to becoming debt free
Welcome back to Part 3 of "You Can Get Rid of Debt." This is a series of hubs that will encourage and give you advice on how to wipe out debt and stay out of debt. If you have been following the steps of this series to get rid of debt, by now you should have compiled your bills into one place, cut up your credit cards and have spoken to all of your creditors. If you accomplished those steps, you are well on your way to tackling that first bill. This is where the fun begins. Yes I say fun - yes - keep this mission positive and don't look at it as a negative experience. You are well on your way to becoming debt free. Say it over and over "I am going to be debt free". I'll share ways on how to tackle that first bill in this hub.
Stay Focused on Becoming Debt Free
It is bill extinguishing time
Get out your bill with the lowest balance and study it. Study the interest rate and how much money is going towards that interest every month. Pay as much as you can towards this bill over the minimum payment and enough to cover the interest. You can even pay small amounts of money towards the bill during the month - make sure to specify that the extra payments are for principle and not interest. Now, while you are tackling the first bill, make sure to pay the minimum payments on the rest of your bills. After you've paid off that first fill, apply the same amount you did to the first bill along with the minimum payment towards the next bill with the lowest balance while continuing to pay the minimum balance on your other bills. Dave Ramsey calls this the "Debt Snowball". Dave Ramsey suggest that you save $1000 first in an emergency fund before paying off debt. Some people can do this and other can not. The choice is yours. The main mission is to start tackling that first bill to get you started on the road to becoming debt free.
The Debt Snowball Courtesy of Dave Ramsey
Sell items you do not need anymore
We all have items in our closets, basements and attics that we don't need and are collecting dust. These items can be a blessing to help you get out of debt. Take a day to search these places in your home and to see what you can sell to make some extra cash to put towards that first bill. You can even consider joining sites like Ebay or Craigslist to sell some of your items you don't need anymore; and you may even consider having a yard or garage sale. Items that may seem like trash to you will be someone else's treasure. Items such as books, china, Christmas ornaments or baby and children's clothes sell well.
Find Ways to TackleThat First Bill
When you're determined to get out of debt, you will naturally become motivated to work hard to achieve that goal. Consider getting a part-time job to help you achieve debt freedom. There are many things you can do. Check out the want ads or online for part-time jobs. Just working an extra 8 hours per week will help you to tackle debt. During the summer months many people need their lawns mowed and during the winter many need their door yards plowed of shoveled. This will give you some extra cash to put towards your bills.
Sell Your Crafts
Are you a crafty person? If so, strongly consider selling your crafts or offer services. If you sew, you can do minor alterations for people, you'd be surprised at how many people need their pants, skirts or dresses hemmed. If you crochet or knit, make some simple dishcloths or washcloths and sell them for $5.00 a piece. People love handmade cotton dishcloths and washcloths because they are very strong and durable. If you know carpentry, get the word out; I can assure you that you'll probably get more work than you can handle. Enter local craft fairs and farmer's markets to sell your crafts. Before you know it people will be knocking on your door for your products or services. Also consider selling your crafts on sites like Etsy.com Etsy is visited by people all over the globe everyday looking for unique handmade crafts.
Stay Positive and Focused
Remember to stay positive and focused during this season in your life. Before you know it you will begin to see the light at the end of the tunnel. Remember that it took a while to get in debt which means that getting out of debt will not happen overnight. Just remember that with determination, a positive attitude and ambition, you will become debt free. Believe in yourself. You can do it!