How do I get out of debt. I work 2 jobs thats 6d/week and I still can not catch up even with limited spending?

Question

On paper I should be coming out ahead of the financial game with a good amount in savings but in reality I am treading water and not getting anything paid off. I need help!

Answer 1

You need to set up a STRICT budget. Account for every penny. Don't buy anything that's not on your list. You should be able to have total visability over your finances.

If you have credit cards, pay off the highest intrest rate cards first, while paying something on all of the other cards. When a card is paid off, DON'T use it again. Then pay off the next highest rate card until all of your credit cards are paid off.

When all of your credit cards are paid off, then pay yourself (put the money in savings), while keeping to your budget.

Answer 2

Try writing down everything you spend for a month and see where you can cut spending. You may be spending money that you don't realize you are spending. Getting a cup of coffee or a pack of gum can add up. Next, try putting a little bit of money into a savings account before you pay your bills. If it's in savings then you probably won't spend it. Finally, look at all of your bills. Pick the one with the lowest balance and pay more than the minimum due. Start with that one and concentrate on getting it paid off and then move on to the next one.

Answer 3

Don't be overly ambitious and try to pay too much down only to run it up again. It's a vicious cycle. Use a calculator on Yahoo Finance to figure out how long it will take to pay off what you can afford to pay down each month and stick to it. Also get rid of your expensive car if you have one and buy one you can afford. Either don't shop or budget for it as part of the plan. Good luck, you can do it, and you'll feel great after.

Answer 4

1. Where are you ? 6d/week = ?

2. Write down how your money is being spent.

3. Which of these are fixed costs, expenses you have to keep paying out on. eg rent, insurance, power, internet.

4. Which of these are not fixed, vary from month to month ?

5. Why do they vary ? Look at how you can reduce each of these and keep them lower.

6. (a) What are your current debts ?

6. (b) What is rate of interest on each of your current debts ?


6. (c) What minimum payments for each debt so creditors not chasing you.


Generally pay off quickest debts with higher interest rates.

Answer 5

Sounds like you have credit cards. Credit cards are very sneaky and have all these tricks like finance charges and the ability to jack up your interest for absolutely no reason. Go to a credit counseling agency - www.aiccca.org has a list of certified ones - and they will help you by negotiating with your creditors to reduce interest, late fees, and finance charges, and you will pay one lump sum instead of trying to get ahead, and within a few years, you will be much better off.

Answer 6

You said you have a good amount of savings, may be that is where your problem is. Big savings don't amount to something until you find somewhere to invest it on and earn better return.

Try preparing a plan, or if you are in business, do a carefully laid out business plan. Check on this link: MyOwnBusiness.org, it provides free ready to fill up forms of business plan.