How To Get Out Of Debt The Easy Way

1. Get out of Debt

Do you have ongoing debt and it's started to get out of control?

Are you living from pay to pay?

Are you spending more than you receive?

Do you want everything now and put that everything on Credits Cards or Personal Loans?

This is your NO.1 Priority - GET OUT OF DEBT.

If any of the above relate to you, it's not healthy, it's not worth it, it doesn't have to be this way. This is the information age, you get need to get yourself educated. If what you are doing now, isn't really working that well. THEN, Take Action, Learn and Change.

That's the hard core truth. Take responsibility for your actions and Live Deliberately.

Right Now -

Write down your Assets, Liabilities, Income and Expenses. I have attached a sheet you can use, which is in excel, it does all the sums for you.

BE HONEST with yourself. Write down all your LIABILITIES. Liabilities are everything you owe to someone else.

Now it's time to get Creative, ask yourself questions - How can I reduce my debt? What's the easiest way to turn my current financial position around?

* Sell old Stuff you don't use anymore
* Second Job for the short term
* Ask for a pay rise
* Don't buy your lunch everyday, make it a treat, once a week
* Get a new job, that is closer to where you live or pays you more money
* Give up Alcohol and Cigarettes (especially the Cigarettes, they are deadly, they are not worth the life risk!)
*Review your Budget - I have attached a Budget Planner for you to use.

Now that you have some ideas, ACT ON IT, write down what you are going to do? When are you going to do it? What is your back up plan? What is your reward if you succeed?

Reducing the Debt

Option 1

Place all your outstanding debt in one loan, this would be better in your house loan if possible, as it's usually the lowest interest rate. This will mean you have to actually go to the bank and give them all your details. This is a good time to do some research and investigating on the best type of loan and bank to use. There are some great opportunities now with changing banks. You don't have to be loyal to the one bank.

Option 2

Take your lowest debt amount, let's say it's $500.00 layby. Let's say you have to pay $20.00 off this layby a week. Now, with the additional money you have worked out - say it's $20.00 a week. You will pay $40.00 per week off the layby until it is paid. No ifs or buts.

When you have paid that layby out, you go to the next lowest debt. Say that's a $5,000.00 Personal Loan, that you have to pay $100.00 per week off. You pay the $100.00 plus the $40.00 from the old debt that has been paid. You keep going until this debt is paid.

Now you keep doing this until you have all your debts cleared. Any additional monies from Tax Refunds etc, you need to pay off your debt. This may sound daunting, but once you get some momentum, you will be able to see the light at the end of the tunnel.

Reward yourself with a very small gift, treat or dinner every time you wipe out one of your liabilities.

2. Invest rather than Save (10% straight off the top)

This is where you need to realize that saving is old hat, to make the ultimate cash, you need to invest your money into strategies that you feel comfortable with. Do you research and educate yourself. All Entrepreneurs invest in Property for instance, I'm not saying that you have to do this, but Property works and it works well.

In society, it is trained into us to work, pay taxes first, then bills and then save the rest. That's not what Entrepreneurs do. They always, always, pay themselves first.

3. Take percentage of income for charity

Have you heard of the what you give out, comes back tenfold. It's true, but you must give with the right intention. You want to give to charities that you feel passonionate about.

You can also volunteer some of your time!

4. Pay Bills

Now pay your bills, do you have a budget, if not, I have attached one for you to use. Be clear what you spend your money on. Be ruthless with what is a NEED and what is a WANT.

Be honest -

Lunches

Cigarettes

Alcohol

Presents

Games, fun

Phones

Internet

Material objects - Do you really need it?

The list goes on.....

This is usually an eye opener, no wonder you can't buy that house or go on that holiday.

5. Learn the Attack/Defence (Attack - how to spend, Defence - how to keep it)

Ask yourself when spending, Do I need it? It's the little things that matter, in your office, do you have things that are not really needed, there is no need to buy everything that comes on the market or is trendy.

Can you purchase things when they are on special.

Stop and tell yourself, I'm going to walk away and if I still think I really need this product in 30 days, then I will come back and buy it. Chances are in 30 days you may realize that you don't need it after all, or you have even forgotten about it completely.

6. Education - Be money wise

Educate, Educate, Educate

I can't say this enough. Do move forward and grow, you need to educate yourself, especially with money. Like I said, it's the information age, and you can get lots of information on money, reducing debt, consolidating debt, making money and more...

7. Accountant - Best Tax Strategies

Get a good accountant that specilises in your type of Business Industry. You want them to be working on the best tax strategies to reduce your tax the legal way. These are worth their weight in gold.

8. Money Mind Set - Positive Mind Set

What do you think about money?

Do you hear yourself saying? The rich are mean? I don't need money? Money makes you selfish? I'm only worth $20.00 per hour Etc etc

Then you don't have a positive money mindset. How can you make more money or reduce debt, when you are saying that it isn't needed or you only worth.......

Be aware of what you are saying about money, also be aware of what friends and family say. They are a reflection of you!

9. Plan - keep risks minor, make wealthy choices and timing - How Much and When?

Keep planning to make more money. Set yourself goals, timeframes. Keep it realistic. You can say - Well I'm in a job and earn $40,000 per year, but I'm worth $150,000 a year. This is a big jump and you will probably sabotage yourself.

Now if you change it too, say $60,000 a year, this is better. You can then break it down, to how you are going to do this? Get a better job, leave the job and start a business etc.