Fool’s Wealth

In the world we live in today debt is a huge problem and there are so many people out there who have debt that is just completely out of control. This could have been caused by credit cards, bills or increased interest rates. There are so many things out there that put us into debt sometimes we need a little help mastering our debt and staying on top of things

For the next 30 days we are going to go on a daily journey of mastering our debt. Starting today we will begin to learn what to do when debt gets out of control, how to choose the best loan and how to control our spending habits so debt is not such a big problem. I am personally looking forward to this journey as I am looking at possibly heading towards a marriage in the next year or two and will incur some debt as a result and I look forward to helping many people master their debt in 30 days.

Day #1 – When Your Debt Gets Out of Control
If your debts become out of control and unmanageable it is important that you do not close your eyes and hope the problem will go away because there is no chance it will. Face the facts and begin to draw up a plan to free up some money to pay off your debts (and winning the lottery does not count as a plan).
When I worked in a newsagency hundreds of people would come in buying lottery tickets hoping they would win the lottery and all their problems would just go away. No one ever one, but they kept coming back and buying more tickets trying to hide from creating a real solution to their problem.
If your problem is extremely serious or long term it could be a good idea to notify your creditors (those who are lending you the money) and possibly consider seeking professional advice (especially if after these 30 days you still feel as if you haven’t mastered your debt).

Draw Up a Plan
Sit down and look at all your expense that your debt is causing. How much do you have to pay per month in fees, how much do you have to pay in interest each month. At the ABSOLUTE minimum you will need to find enough money each month to pay for these expenses so your debt doesn’t increase over time. Don’t worry because in the coming days I will show you some great tips on how to save money, how to curb your spending habits and how to make some extra money.
Then you will need to work out how much extra money you can pay off your debt each month OVER the cost of the interest and fees. This is how you will begin to control your debt, as your debt becomes smaller then you will have less interest and will be able to control your money much better

Set a Timeline
Setting a goal is a great thing if you want to be successful. One of the major attributes of successful people is they have goals and they set out to achieve them. Set a goal of when you want to have your debt cleared by, or maybe when you want to have your debt down to a more manageable point by. Set easy achievable goals at first so you can be encouraged by the achievement and then move onto larger and more difficult goals as you have a few notches under your belt.

Go to Day #2 - How To Write a Budget and Stick To It