Debt Fix Hints and Tips for Managing your Money

Debt Fix believes the key to being debt free is can be found through:

• Making careful spending and borrowing decisions
• Focusing on savings
• Asking for help when you need it
• Taking responsibility for your actions

Here are ten tips to help you free yourself from debt. Some are easier to follow than others, but all are designed to help.

1. Create a realistic monthly budget for your expenses.

Make a list of all your monthly bills and necessities and make sure they are covered by your monthly income. Only spend money on items not listed in your budget after the bills are paid. Be disciplined and stay within your budget guidelines.

2. Pay off the balance on the credit card with the highest interest rate first.

Then, get rid of the credit card and next month do the same with the card that has the next highest interest rates. Continue until you reach the credit card with the most favorable terms (i.e., low interest rates) and keep that one only.

3. Learn to use cash instead of credit cards.

Have one credit card and use it only for emergencies or major necessities, such as a new refrigerator. Put your credit card in a safe place, not available for everyday use. Also, do not accept increases on your credit card limit.

4. Cut down on your unnecessary expenses.

This includes dining out, overusing your mobile and other such unnecessary expenses.

5. Evaluate your housing situation.

Your housing costs should be no more than 33 percent of your household income. Shop around for lower insurance rates, refinance your home mortgage and look for more economical housing.

6. Contact your creditors and try to work out repayment plans.

Many creditors are willing to work with you in a manner that will help them get their money without having to resort to debt collectors.

7. Become a smarter shopper.

Look for deals, bargains and savings. You'd be surprised at how much you can save if you take the time to shop around.

8. Look for extra ways to make some money.

From part-time work to a garage sale to taking in a border, there are many ways to bring in some additional income. If all else fails, seek out help from a debt reduction specialists like Debt Fix or financial counselors who can help you formulate a plan for getting out of debt and staying out.

9. Review your home telephone and mobile phone arrangements

You will almost certainly be able to save money. Other providers are very likely to be able to offer you a better deal, if you shop around.