Help With Debt - Build A Habit Of Saving
When looking for help with debt, it isn't good enough to just root out your bad spending habits.
How many of us have put the credit card down for a period of months only to pick it up again and max it out during a moment of weakness? Your bad debt habits must be replaced with a culture of saving.
A habit of saving will help build a barrier to your income and reinforce the desire to stay free from debt.
So how can you change your habits from spending to saving? Here are a few suggestions: Pay down your debts Pay all of your credit cards down.
Apply as much additional payment as you can to the card with the highest interest rate.
When it is paid off go to the next card and pay it off the same way.
To super charge the pay down, apply the full payment amount of the first card as well as the additional amount you applied to the second card.
Rinse and repeat until all of your credit cards are paid off.
IMPORTANT: Don't use your credit cards after you pay them down.
Start with small savings and work up As you are paying down your debt, start collecting small amounts in your wallet or purse...
5 and 10 dollars at a time.
Once you get to $50 put it into savings and start again.
When your debts are paid off, take the amount you would have been spending on them and put it into savings each month.
Pay yourself with each paycheck With your Debt under control, you can start a more aggressive savings program.
You pay your creditors, your mortgage, your utilities...
Now it is time to pay yourself.
Take 10% of each paycheck you receive and place it into savings.
This is your investment in yourself and your family.
Make interest work for you With your debts paid down and a savings program in place, you can now look at putting interest to work for you.
In addition to your savings, consider investing a portion of your income into safe investments.
By doing this you can build your net worth and help secure your retirement income.
The path from bad debt habits to saving habits doesn't happen overnight, but if you follow these suggestions you will find help with debt problems and begin to form a solid foundation for your retirement savings.
How many of us have put the credit card down for a period of months only to pick it up again and max it out during a moment of weakness? Your bad debt habits must be replaced with a culture of saving.
A habit of saving will help build a barrier to your income and reinforce the desire to stay free from debt.
So how can you change your habits from spending to saving? Here are a few suggestions: Pay down your debts Pay all of your credit cards down.
Apply as much additional payment as you can to the card with the highest interest rate.
When it is paid off go to the next card and pay it off the same way.
To super charge the pay down, apply the full payment amount of the first card as well as the additional amount you applied to the second card.
Rinse and repeat until all of your credit cards are paid off.
IMPORTANT: Don't use your credit cards after you pay them down.
Start with small savings and work up As you are paying down your debt, start collecting small amounts in your wallet or purse...
5 and 10 dollars at a time.
Once you get to $50 put it into savings and start again.
When your debts are paid off, take the amount you would have been spending on them and put it into savings each month.
Pay yourself with each paycheck With your Debt under control, you can start a more aggressive savings program.
You pay your creditors, your mortgage, your utilities...
Now it is time to pay yourself.
Take 10% of each paycheck you receive and place it into savings.
This is your investment in yourself and your family.
Make interest work for you With your debts paid down and a savings program in place, you can now look at putting interest to work for you.
In addition to your savings, consider investing a portion of your income into safe investments.
By doing this you can build your net worth and help secure your retirement income.
The path from bad debt habits to saving habits doesn't happen overnight, but if you follow these suggestions you will find help with debt problems and begin to form a solid foundation for your retirement savings.
