Saving yourself from debt

Step 1: Find out what you're paying in interest on your debt. If your debt is all on your credit cards, you'll be paying the interest off for a long time before you even start paying off what you originally owe. Try applying for a consolidation loan from a bank since the interest rate is much lower or if you're a student, look into what kind of bursaries you can get at financial aid on campus. A lot of the time, school based bursaries are given out depending on need.

Step 2: Organize yourself. Sort your bills, plan what you need for the next month, and figure out where your money is going. Start off by listing everything that you buy in a month on a list, and include the money that you use to go out with. Go through and highlight everything that you absolutely have to spend money on, like rent or groceries. Once that is done, sort your list into two columns, one for what you need and one for what you don't.

Step 3: Stop spending. Everyone spends cash each month on stuff they don't need. Figure out what these luxuries are from the list you just made and skip them for a little while. You don't have to skip buying toothpaste, only the things you really don't need like an extra 12 pairs of shoes to match all of your outfits. If you listed everything you normally buy in a month accurately, this should be no problem.

Step 4: Don't Repeat. It's easy to fall back into bad spending habits when your not in debt anymore, but if you do you'll have to repeat the previous steps all over again. It's easier to just stop buying everything you want and focus on what you need.

Whenever you're buying something take a second and ask yourself what else you can buy with that money. This normally stops most people from making horrible mistakes like trying to buy a Porsche on a student's budget. That never ends well.

Good luck guys.

James

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