Well, one more thing about your coffee, no matter where you get it, is that you can make great tasting coffee at home and save yourself a ton of money. Most of us would rather pay for the convenience of having someone else make it for us. Well okay, but that kind of thinking needs to change if you are looking to get out of debt. Sorry! One time, I did a budget for one couple I was working to get a mortgage and discovered that they were spending close to $400 just for coffee (2X a day for each of them and an occasional one for the kids). It was shocking to them that they were spending more on coffee than gasoline. They stopped their buying their coffee out and stared making it at home.
Some other things around the house where you could look: TV and Internet access. I know that I might get some resistance here but you do not need cable TV. That is right. You can put the $69 a month towards paying your debt off. You can get movies for free at the library. My wife and I have found the selection at our public library to be quite good. Now for the Internet, take a look at what service provider you are using. I see tons of people using AOL at $21 a month. The truth is that you can get the same internet service through Net Zero for $9.99 month. Better yet, see if you can tap into your neighbor’s wireless network if it is a non secure network. You might even talk to them about an arrangement where you pay them half their Internet bill for using their network. Sounds brash and radical, but so is getting out of debt in today’s world.
What are you paying for your insurance? Are you paying too much? It makes sense to compare different insurance companies. Insurance premiums can vary hundreds of dollars from company to company. It pays to shop around. Another thing you can do is replace your light bulbs in your home with fluorescent bulbs. Not only do they last a lot longer and are better for the environment, they will save you money. I knocked 25% off my electric bill in my condo by switching to “green” light bulbs.
Get Your Credit Back on Track
Okay, that is enough for things around the house. As you can see, there are plenty of places where you can cut your expenses if you declare “today is the day” to begin your journey out of debt. If your credit is not in the best shape and you have collection accounts, you do not have to pay all of the balance back. If your accounts have been turned over to a collection agency you can negotiate for pennies on the dollar of what you owe. If you do not want to do this yourself, you can hire a debt negotiator. Most settlements come in between 40-60 percent of what you owe. Once the debts are paid off, your score will go up as well. Having your scores go up will do two things. First, it will put you in a position to borrow money at better interest rates and terms (for a home, a car, or with a good credit card). Second, you will most likely think better of yourself and have more confidence in life knowing that your credit is cleaned up and that your scores have gone up. All of this comes from knowing that you did the work to make it happen.
The bottom line about getting out of debt is to live by your needs and not your wants. Do you really need that expensive vacation, jewelry or car? You will have to pay it back with your time. If you are like me I would rather enjoy my life than worrying about how I am going to get out debt.
Written by Debt Free Dave. Debt Free Dave has been in the mortgage and consumer finance business for over 10 years. He has a Finance and Real Estate degree from the University of Arizona. This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
