Sentry Page Protection
Its Time to Get Real About Debt Part 2
The fastest way to get yourself out of the red and into the black is to simply stop spending. Easier said than done, but it can be done. You will still need to make your debt repayments according to your Payment Push but all other spending is discretionary or non-essential.
Here are some things that may help you to stop spending:
Do you know exactly how much money you are spending? Ok, it may be your entire wage but do you know exactly what you are spending it on? If the answer is no, it's time to start tracking your spending.
Everyday you may be spending money on stuff - coffee, lunches, magazines, alcohol, movies - that could be going towards your payment push to get you out of debt faster.
Use our Spending Tracker to record every cent you spend and determine just how much extra you could be putting towards your payment push. Carry it with you everywhere you go and write down every cent you spend, regardless of what it is for. Keep a track of drinks, food, groceries, petrol, clothing, haircuts, medicines, parking fees, if you pay for it you record it. Mark each item essential or wasted money and then at the end of each day total how much you've spent. Then tally the total of the money you've wasted. If you multiply that by 30 (for a month) and then add it to your Payment Push, how much earlier would you be debt free?
If you are wasting just $10 a day and take that $10 a day and add it to your payment push you'll have paid off $3,650 in one year! If you had to come up with that much cash at once it would be hard. Breaking it down into smaller amounts it's easy to find and even easier to slash that debt until it doesn't exist.
Here are some things that may help you to stop spending:
- be honest with yourself and everyone else - tell them you are not spending money because you want to get out of debt
- stop using credit cards - use cash or debt/ATM cards
- turn down increases in credit - tempting though it may be it comes at a hefty price
- rework your budget so you have specific categories for everything including occasional expenses - gifts, entertainment, holidays
- stick to your Payment Push - keep making those payments
- withdraw your money for the week once a week - stay away from ATMs to avoid fees
- pay bills on time - avoid late fees and penalties
Do you know exactly how much money you are spending? Ok, it may be your entire wage but do you know exactly what you are spending it on? If the answer is no, it's time to start tracking your spending.
Everyday you may be spending money on stuff - coffee, lunches, magazines, alcohol, movies - that could be going towards your payment push to get you out of debt faster.
Use our Spending Tracker to record every cent you spend and determine just how much extra you could be putting towards your payment push. Carry it with you everywhere you go and write down every cent you spend, regardless of what it is for. Keep a track of drinks, food, groceries, petrol, clothing, haircuts, medicines, parking fees, if you pay for it you record it. Mark each item essential or wasted money and then at the end of each day total how much you've spent. Then tally the total of the money you've wasted. If you multiply that by 30 (for a month) and then add it to your Payment Push, how much earlier would you be debt free?
If you are wasting just $10 a day and take that $10 a day and add it to your payment push you'll have paid off $3,650 in one year! If you had to come up with that much cash at once it would be hard. Breaking it down into smaller amounts it's easy to find and even easier to slash that debt until it doesn't exist.