How To Get Out Of Debt

Let’s start with something simple. The secret of how to lose weight. The answer is eat less and exercise more. Less calories in and more calories burned will lead to weight loss. Well that was easy. How about getting out of debt. This one may be easy too. Earn more and spend less.

Okay, this is more complicated than it appears. One of the first things to consider is needs, wants, and de- sires. Not to make this a psychological discussion, but consider the differences. Needs – I need a car to get to work. Wants – all my friends have a new car I want one too? Desires- I want to buy a Mercedes and ride to work in style. Notice the fine difference in each of these statements. Everyone wants the Mercedes but do you really need it? Think about this difference before making the next purchase. Some experts even recommend putting off buying something for at least a week. Then if you still want it and need it, go ahead and buy it. Of course what hap- pens during that week, or “cooling off” period, you may lose interest or have an epiphany, and decide not to purchase that item.

Here are a few more helpful hints to help with debt management. First, try to not use your credit cards. It is so easy to buy something instantly but then the bill comes in along with inter- est. Whenever possible use your credit cards wisely and pay off any balance each month.

If there is a large balance on a credit card here are a few ideas to try. One, pay off the card by using one of those zero interest card offers. Then work really hard to pay off that card since every payment will be going to principal. Another option would be to contact the lender and ask for some reprieve. They might surprise you and lower the interest rate being charged. Another idea is for multiple credit card balances. Find out which one has the highest rate of interest and then focus on that card. Put more money towards that one and then work on the next card and so forth.

Another idea is to pay extra money on any bill. You can do this with credit cards, auto loans, mortgage, etc. Any extra payment will help reduce the interest paid and shorten the time period of the loan.

These ideas all sound good, but they are easier to talk about and harder to implement. Many people get a part-time job to help pay off some bills. Here are a few more ideas to save you money. Then any savings could be used to pay bills. A few suggestions for your consideration:

• Pack your lunch. Eat at home more often.
• Shop with a list at the grocery store. This helps eliminate impulse purchases. Use coupons and buy generic items.
• Think about cutting the cord on cable. There are all kinds of alternatives. (Hulu, Sling, Netflix)
• Use the public library – they have books, music, movies, and more.

Finally, as the bills get paid, think about reallocating some of your money to an IRA, Roth, or any savings account. This is the best way to start building a cushion for any future emergency. Call your local NSS representative, or Joe Elliott, in the Home Office for more information on how we can help you.

NSS offers some of the best rates and plans that money can buy. Call your local representative or Joe Elliott in the Home Office for more information. Let us help you and your family build a secure future together.