Live Within Your Means to Get Out of Debt

Get Out of DebtToo many of us know the misery that being in debt can bring. It’s so easy to take out loans, to put purchases on credit cards and think about having things today, and paying for them tomorrow. However, with this attitude, tomorrow never comes and the debt that you owe just mounts up to a level that is unsustainable.

The worst thing to do when you’re in serious debt is to not recognise or acknowledge it. It’s no good opening a new bank account to get access to another overdraft facility, or taking out a new credit card so you can spend up to your limit on that. What people in debt need to do is address the situation head on and begin paying the debts off, however hard that may seem.

You can deal with debt problems in different ways, and the amount of debt that you owe will dictate which paths are open to you.

The best way to handle clearing debts if you can is by doing it by yourself. This doesn’t mean you shouldn’t get advice from a friend or relative who is good at handling their finances. In fact, this could be a real help – if you’re willing to be completely open and honest with them about the state your finances are in. They can help you work out a strict monthly budget which, if you stick to it, will mean that you are spending less than you earn, and any money left over each month can be redirected to paying off your various debts.

It’s an uphill struggle, as more often than not, there’ll be an unexpected cost around the corner – like the car needing a repair job, or a boiler breakdown. But, gradually, if you keep your expenses lower than your income, you’ll beat the debt and get back in the black.

Readers: How do you deal with debt?

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4 Responses to Live Within Your Means to Get Out of Debt

  1. Paul 10/22/2012 at 1:33 am #

    I can’t agree with you more Dominique. Sometimes you just have to say no and go without until you have the cash!

  2. Dominique Brown 10/19/2012 at 3:16 pm #

    It is very important to take care of your debt problem as early as possible. If you just ignore it, your debts will eventually grow and go overboard. To be able to pay off your debts, you need to set up a plan and set aside a portion of your monthly income to be used for debt payment. It will be an uphill struggle but when you stick to your goals, you’ll surely be debt-free soon.

  3. Thomas S. Moore 10/14/2012 at 6:16 pm #

    I left a comment for you article before hopefully it wasn’t put into spam. I think the biggest thing is making sure you live under your means and save. To many feel like the are entitle and need to spend to justify why the work so hard. Pay yourself first save and get the things you need. Of make sure you enjoy yourself but be wise about it.

  4. Thomas S. Moore 10/11/2012 at 9:12 pm #

    The biggest problem is the people don’t know how or don’t want too. The think they are entitle to homes and cars they can’t afford. Or the are always competing and worrying about what someone else has. A better title would be live below your means to get out of debt, or dont get in debt in the first place.