September 22, 2016 by
One of the major issues affecting all of us in our lives is our relationship with debt. Even if you’re not particularly plagued by a growing debt that deprives you of living the life you really want to live in terms of the plans you have for the future, merely keeping your money in a bank signifies a relationship with debt regardless. The bank uses the money you deposit into your account to first create more money on their balance sheets (fractional reserve banking) and then they loan that created money out and charge interest for it. That’s perhaps a discussion for another day though, otherwise if you do indeed have debt which is hindering the quality of your financial life, you need to have a proper plan to get out of it.
As with many other areas of life, the motivational books we read, seminars we attend or watch and audio tapes we listen to do quite well to serve as some motivation to take action, leaving you all pumped-up and psyched by ideas such as getting out of debt. That initial excitement often wears off very quickly though and with each passing day it seems harder and harder to firstly get that motivation back, and secondly to actually try and implement practical steps to get out of debt, or achieve whatever goal you have.
Your plan to get out of debt needs to be a practical one though. Yes, this plan can be guided by some basic principles of chipping away at your debt and making reforms so as to stay debt-free, but your success will depend largely on the application of some of your own discretion. You are the only person who’s going to be truly honest with yourself about the true state of your finances, your weaknesses when it comes to money and your strengths as well.
An Easy Way to Cut Expenditure
By the time you consult with your creditors to thrash out an arrangement which will have you clear of debt once and for all (perhaps even through a debt counselling and consolidation service), you have to effect some everyday expenditure-cutting measures which will put you well on your way to ridding yourself of debt. The easiest place to start is in those elements which form an everyday part of your life, especially the financial aspect of your life.
Just as is the case with trying to lose weight or something along those lines, simply cutting off all spending is not possible, so a “financial fad diet” such as this won’t work. What you rather have to do is just look at each and every area in which you spend money and try to find a way to reduce the spending in every one of those areas. If you love to gamble a bit for instance, exploring something like a Genting Casino Review would have you in for some savings in the form of a promo code that has casinos matching your account-funding deposit, which means you save some money by spending less.
I use the example of gambling because it epitomises one of the many areas in one’s life which people in debt feel guilty about and the point is you don’t have to feel guilty about doing the things you enjoy doing. What you have to do is just find ways of cutting costs and then using that money saved to pay off your debts.