Bankruptcy & Foreclosures

So let’s say you have decided to take the steps toward managing your debt but you aren’t seeing immediate results. While frustrating, realize that debt reduction can be a long, slow process. Sometimes the measures we implement today aren’t seen for weeks or even months. The following are some well proven practices to get things rolling.

Take a long hard look at what’s truly necessary in your daily life, and be willing to make some sacrifices. Cable or satellite TV, satellite radio, iPods, and eating dinner at restaurants are simply not necessities. Can it be hard to let go of some of these luxuries? Absolutely but the savings in doing so will be noticed almost immediately.

Make a budget but better yet track your expenses in a software program like Quicken. Categorize your expenses so that you can clearly see how much you spend in each category. Once you can easily spot your problem areas (eating out, clothes, gas), you’ll find it much easier to target them for reduction.

Know exactly how much money you have in your checking account at all times! It sounds simple but bouncing a check is a good way to incur a pile of unnecessary fees.

Stop borrowing money – Be strong about this one! This means no more credit cards, no more car loans, no more cash advances, no more home equity lines, no more personal loans, etc… If you can’t afford to buy something with cash, you can’t afford it. Walk away and save up until you have enough.

Keep the long term in mind. So often I deal with clients who give up on their plan because they don’t see instantaneous results. Keep focused on where you hope to be not only tomorrow but in five (or ten, or fifteen) years from now. Getting out of debt takes time and mistakes (or improvements) you make today will have an impact on your life far down the road.