Debt Consolidation Credit Counseling In Phoenix

Forgive the cliche, but it's true. If you had less debt, would you be less stressed? Of course you would! I know I would. Less stress means a longer, happier life. You can start paying yourself back by, well, paying yourself back.

Debt is money owed we can't pay back right away or payments that are running us even deeper into the ground. We've in a sense turned into a society that has gotten used to living on credit, which has put us in a mess. The first step has to do with attitude. Pay cash as you go. Not easy and maybe impossible to do in one big step but you've got to start trying. A very workable approach is just to start getting creative as to what you can do to save a bit here or a bit there.

Next step ... so you have cut back, and you've found some extra funds. Don't party just yet - you still need to think about reducing debt not just reducing spending. We're going to take the snowball approach to debt resolution.

To actually keep expenses down and start reducing your debt you want to start living on a budget. Budget is a dreaded word for most of us. We equate it with a Spartan existence, bland diet, no more toys and the like. Your budget however represents your plan of action. Laying out your budget is not the easiest thing to do, be prepared to struggle at first and it may take a month or two before you actually find a plan that works, a budget that fits. Make a list of what you're paying out for bills, food, clothing and entertainment. Then start prioritizing and assigning dollars to each category.

Your first goal should be to pay off existing loans. This is often money you are paying someone for something you bought or did so long ago you've forgotten what it is you're paying for. There are two theories as to what works best. The first one is to pay of the loan with the highest interest first, the second one is to pay off the smallest loan first. You can go either way but I suggest the second approach. Paying off a small loan represents a small victory. You'll feel good. The money you've been sinking into that loan can now be applied to the next smallest loan.

Either approach will eventually lead to a snowball effect. The more loans you pay off the more you have available to pay off the remaining loans. Don't start trying to save until you're well on your way. Keep your first priority getting out of debt. You'll also learn a good life's lesson. Living without debt is very satisfying indeed. And living within your means isn't nearly as bad as you were afraid it was going to be.

You've finally paid of your debt. Now what? The rule here would be don't go out and buy yourself a congratulatory present, on credit? It's OK to celebrate, you deserve it, just don't go overboard. The next goals are to stay out of debt , save, and invest in your future. Watching your saving and investments grow is much more fun than watching your debt increase.

As you've paid off your debt you've been paying yourself although it may not have seemed like it. Now you can pay yourself where the results become more tangible and visible. Save, invest, and get those things you want by paying cash for them. You can live a more satisfying and less stressful life, maybe even a longer one, with no bad aftertaste.