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Simple Steps Reducing Debt

Okay, there you sit at your kitchen table, with a stack of bills high enough that you can barely see the over them. Your wallet contains nothing but dust, and you’re starting to lose hope that you’ll ever be able to climb out of this hole you’ve gotten yourself into with debt. But most people are really not quite sure how to go about reducing debt. Well, it’s really not that hard, and here’s how to get started reducing your debt.

Before getting into the important points, it is to be made clear that this article is important for those people that have been dealing with the International Debt Collectors for a long time and the only way to reduce your debts is to take the following points seriously and start implementing them from day one itself so that debts can be cleared on time and banks would not find an excuse to hound you.

The first thing you need to know is that you got into a ton of debt by spending more money than you make. There’s really not much more you can say about debt than that. So you’ve done one of two things. First you have actually lost some income for one reason or another and now you’re having trouble paying for the debt that you could easily service before. Or, your eyes are too big for your stomach and you’ve bitten off more than you can chew because you just couldn’t wait to save up money and had to have that new car and house and big screen TV all at once.

Regardless of which category you fall into the only way to get out of the heavy debt trench you’ve dug yourself is to begin by putting down the shovel. The first thing you have to do in order to begin reducing debt is stop spending. If you can help it at all don’t spend a single dime for two weeks. You will be surprised just how long you can go without spending any money. There are probably entire cabinet’s full of food that you just haven’t gotten around to eating. Those burgers in the bottom of the freezer? You already paid for them, just eat those instead of buying more food.

The second thing you absolutely must do to reduce your debt is make a budget that gives you extra money to pay down your existing debt at the end of the month. If you have had a reduction in income, you’re either going to need to cut back by moving to a less expensive house, or find ways to replace your missing income. In most cases you are better off downsizing than trying to work yourself to death. Everybody needs time to rest and relax and the difference between a 1200 sq ft. house and a 1500 sq ft. house maybe tens of thousands of dollars, but not really that much different when it comes to how much you can enjoy it.

It’s easier said than done, but that’s really all there is to it. To reduce your debt all you need to do is stop spending and start paying down your debts. You’ll either repair your credit history, or you won’t and you’ll have to live with poor credit and descending living conditions for the rest of your life, the choice is up to you