Debt Consolidation

If you are one of the few people living debt free, then you are a very lucky person. In 2005, the average American had about $8,000 worth of credit card debt. Many Americans live paycheck to paycheck, and several are just months away from bankruptcy. If you are one of those lucky few or about to be there, living and staying debt free can be a tricky but rewarding thing.

Baby Steps
If you are just starting out living a debt free life, take baby steps; don’t try to do everything at once! Pick one task each month and stick to it. If you try to do everything at once, you will get burnt out and be more likely to have a binge. It’s just like dieting: if you try to lose 20 pounds a week, you are destined to fail.

Set Goals
Setting goals and sticking to them are very important to living debt free. Start by setting a goal every month and sticking to that goal. For example, start with setting a grocery budget for each week. Make your list, clip coupons, and only bring enough cash to get what is on the list. Many people are surprised about how much money they waste on stuff they don’t need at the grocery store. If you and your family eat at home every night, make a weekly menu. This will help you stay on track with your shopping.

Give Up the Small Things
I am sure that everyone has heard this before, but skipping little things like the morning trip to Starbucks and the afternoon trip to the vending machine can make a huge difference. Also, if you start packing your lunch, you will save a lot of money.

Fighting the Urges
No matter how hard you try, temptation is going to hit. If you try to never spend money, ultimately you are going to break down and want something. So instead of binging and putting it on a credit card, save for it. If it’s a new computer, put away a little every month. You may not get instant gratification, but you will feel more like you earned it.

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