Can you imagine being a young couple, with over one hundred thousand dollars in debt? Well, that is exactly what happened to one young couple, Levi and Jennifer Ennis who after taking Dave Ramsey’s course financial course, decided to get serious about their finances. The couple was more than one hundred thousand dollars in debt, because of two unpaid car loans, over seventy thousand dollars in student loans, and other expenses. The odd thing is that they thought that car loans and student loans were okay debt for a couple. That is, until they took a debt relief course, along with four other couples and realized that they had incurred one third of the debt, in the entire room.
Quickly, they got down to basics, which all of us can do. Realizing some true strategies for bringing that mountain of debt down is the first thing to do. Also, make it up in your mind, that this is not the way to live. Often times, with extreme debt, you feel the added pressure, particularly, with bill collectors calling your home and having to borrow from friends and family. No one likes any of these things, so let’s focus on what can be done with getting out of debt quickly.
Make a budget
You will never understand your debt, until you create a budget. Understanding how much money is coming into the household, versus how much money is going out, will help you understand what got you into debt in the first place. Make a budget with your liabilities on one side and assets on the other. If your liabilities outweigh your assets, then you are definitely going to need a common sense debt relief plan.
Try to get all bills together
It may sound like something that you do not want to do, but going to debt relief agencies or someone who is skilled in money management, will probably be the best solution, for you right now. Remember that you made a mountain of debt and now you need someone, to help you make it into a molehill. Your planning skills are probably not at their best right now. So get someone on your side that has a reasonable plan that will help you get out of your financial troubles.
Get rid of some stuff
There are lots of ways to lose debt. If you have three vehicles, selling one will alleviate an extra car payment. And if it takes it, then selling your home, for a smaller home, or even a town home or apartment, may be what is needed, until you can get on your feet again. Remember, that this does not have to be a permanent situation. Just one, that will help you solve your financial burden, so that you can have a less stressful and brighter future.
Sell, sell, sell
There are probably lots of items that you can sell around your home that will make you extra money. Now is the time to clean out your home and sell the old clothes you can no longer wear. There may be electronics or other items that have been sitting around the house for years, which you no longer use. Make a pile or list of these items and have a yard sale on the weekends, in order to earn extra cash. You may be surprised that someone else’s junk can be another person’s treasure. These items will make you extra money that you can use to reduce debt.
Take extra jobs
If you are able, then taking extra jobs for extra income is also a good thing for bringing down debt quickly. Think outside of the box in coming up with inventive ways of earning extra income. Even taking a part time job will help, particularly if you both do it as a couple. Being uncomfortable for a while beats having the bill collectors calling you daily to pay off those bills.
Minimize unneeded expenditures
Remember when you are trying to get out of debt quickly that minimizing expenditures that you could probably do without is important. Do you really need that latte or coffee? Are you able to do your hair yourself for a while? And do you need a back massage, pedicure or manicure–or can you do your own? Minimizing activities like going to the movies or extra things that you do for you and your family for a while, will definitely help in bringing down unwanted debt.
Remember the key to getting out of debt quickly is to understand how much debt you are in; sacrifice things that you probably don’t need anyway to alleviate some of the debt, and having a basic common sense financial plan to minimize everything that is bought for the household. Combining these approaches will help you in minimizing or even alleviating financial problems.