How To Actually Get Out Of Debt
There is really only one way to stay out of debt and that is to spend less than you earn.
However, a lot of people are in debt and when you get to a certain level of debt there appears to be no way out. So what can you do?
There are two main ways to reducing your debt
1) Increase the amount of money you have coming in
2) Decrease the amount of money going out
Typically when you increase the amount of money coming in your spending increases to match or slightly exceed this amount.
There is also only so much you can reduce your outgoing by. You still have to pay bills, eat, go to work, etc etc. However, there are creative ways of getting around this problem that does involve sacrifices. I’ve seen people move back in with parents, sell their house or their car and make other sacrifices in order to become debt free.
What you really need to do is combine the two so that you are increasing your income whilst reducing your outgoings. By taking this approach you will not be increasing your spending as your income increases and will have some extra money to pay off your debts.
You can increase your income by:
1) Getting a better paying job
2) Getting a second job
3) Starting your own business, e.g. ebay, Internet, etc etc.
There are a lot of different options and you should explore them all to find out which is best for you. Even if you can bring in an extra $100 a month it can make the difference between survival and sinking under that ocean of debt.
Look at your outgoings and see how you can reduce them and investigate ways of increasing your earnings … we’ll talk more about some very exciting ways to do that later on!
