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How to Reduce Debt and Save Your Financial Butt



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span                            • Personal Loan Debt              
class="cap">Before      • Mortgage/Equity Loan Debt       
we go any further – let’s       • Revolving Credit Debt           
just pace ourselves here, I think     • Boat or Motorbike Payment       
we need to acknowledge that this      Debt

                          
topic, ‘How to Reduce Debt’,          

Yes, get rid of them all. But  
might not inspire a whole lot of      tragically, we’re all so          
excitement, wouldn’t you agree?       accustomed to having debts like   
Part of the reason could be that      this that it never occurs to us   
it sounds like work, and god          that there’s another option. Or   
forbid we should have to do any       we don’t see how we can get these 
more of that!!                        debts paid off, or manage without 
But sometimes we just have to         our credit cards. So with that in 
bite the bullet and get on with       mind you may be asking yourself,  
it. But again, before we do that,     how do I reduce debt? Well it can 
let’s take a sneak preview at         be done, but it’s not going to    
your life without those ‘Sword Of     happen over night. The first      
Damocles’ debts hanging over your     thing you need to do is start,    
head. Just for a moment imagine a     and the first place to start is   
life where you didn’t have            with you. You need to know        
anything to pay for except your       exactly where you stand as the    
food, clothes, petrol, power and      clock’s ticking on your financial 
phone. And on top of that, you        fitness, the longer you leave it  
CHOOSE where you spend the rest       the worse it'll be. So with that  
of your money. How do you do          said - is this you?

           
that, well you need to kick these     

You’re buying clothes and      
into touch for a start…

           entertainment, or things for you  

• Credit Card Debt                 or the children that you just     
• Store Card Debt                     don’t need, and you’re buying     
• Car Payment Debt                    them with money you don’t have.   



In other words you’re using a         you don’t believe me just stop    
credit card or a store card.          making payments on your car, the  
Those cards fool you into             same goes for your house or       
thinking you’ve got more money        anything else you have on time    
than you really do, and they lure     payments, hallooo…you don’t own   
you into spending money you don’t     any of those things, you’re       
have, and money you aren’t going      renting them. You are renting     
to get. So at the end of the          your lifestyle. Lecture over. But 
month you simply can’t afford to      there’s no point in crying over   
pay the entire balance off. So        spilt milk, let’s just take some  
what do you do? You stress to the     action to get this cleaned        
max… “how the heck can I reduce       up.

                           
my debt…” , then you roll the         

Task One:Stop buying things    
balance over to the next month        you don’t have the cash for.      
and pay the minimum. But you pay      Task Two:Pay off the debts you    
the maximum in interest and fees,     have now, start with the smallest 
yes, we all try and ignore that       debt first.                       
bit. Those credit card purchases      Task Three:Create extra income    
are going to cost you big time.       with the free time you have now   
SO STOP DOING IT!

                 that you aren’t going out         

But that’s not the only injury     spending money you don’t have.    
to your financial fitness, are        (Sorry bad grammar.)

          
you driving a car that you’re         

Yes that is definitely the     
paying off over time, or are you      ‘bite the bullet’ part, but what  
filling your house with things        a great start in ‘How To Reduce   
you don’t have the cash for. Just     Debt’. If you just do Task One    
realise this. If you stop making      you’ll be ahead of the game, and  
payments on those things you          Task Three will help you with     
‘own’, you’ll find out who really     Task Two. But it’s not OK to just 
owns them – and it isn’t you. If      implement Task Two, you must stop 



the injuries with Task One, and       that increasing income packs a    
Task Three can speed you to           powerful punch in this process,   
Olympic financial fitness. Get to     to find out more about earning 5  
it.

     separate streams of income        
About the Author
id="authorbio"                        href="http://www.income-while-you 
class="membersnoticewhite">Sue        -sleep.com/pips"> Income While    
Young of                              You                               
income-while-you-sleep.com has        Sleep.
 
coached people in the skills of       
                             
‘How To Reduce Debt’, she knows       




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