Tips for getting out of debt

You lost your job of 20+ years and haven’t been able to find another comparable position.  You recently went through a separation or divorce.  You have post-secondary expenses for your eldest child. Your accumulated debt is overwhelming and you’re in danger of losing your home and car. Does any of this sound familiar?  If it does, you’re not alone.  A national financial crisis is not just a news item; it affects your everyday living.  What can you do to get out of debt?

First reduce the outflow of cash

• Clip those store coupons and use them.  Sign up to receive email alerts from major retailers automatically.  Walgreens offers Register Rewards® which take additional dollars off the purchase at check out.  Manufacturer coupons are great because they can be used at any store where the merchandise is sold, and they don’t expire right away. A great resource for manufacturer’s coupons is found at AllOnlineCoupons.com. 
• Do price comparisons online for larger items at websites such as Shopping.com and BizRate.com.
• Cut down on your discretionary expenses… dining out, entertainment, unnecessary trips in the car, and overuse of your cell phone to name only a few.
• Stop spending money on nonessentials altogether until your debt is under control.  No new clothing, shoes, jewelry, DVD’s and CD’s.
• Prepare a grocery list in advance and stick to it.  Do more cooking from scratch and fill up on fruits and vegetables. 
• Conserve.  Lower your thermostat, turn off lights and take shorter showers.

Next, find new ways of generating additional income

• Do you really need that china cabinet, grand piano, or treadmill that you purchased in the run-up of your credit balance?  Sell them on Craigslist or Ebay.
• Moonlight by taking on a part-time job. Work more overtime.
• Organize a garage sale to turn your used or unwanted items into cash.
• Sign up as a Rep for the home-shopping industry and work hard to build your customer base.

It is important to build a solid foundation going forward.  Create a realistic monthly budget for your expenses.  Work out repayment plans with your creditors.  Use cash instead of credit cards.  Keep one card just for emergencies.  And don’t resort to payday loans which pull you deeper into a cash crisis.  Look at this time as an opportunity to initiate smarter living routines.  It will pay benefits long into the future.