How to Get Out of Debt Part III

Here is the finale on our series, Part III, of getting yourself out of debt. If you haven’t read the first two parts, click here to view How to Get Out of Debt Part I, How to Get Out of Debt Part II.

6. Time to make some phone calls. I’m not going to recommend that everyone cut up all of their credit cards unless they’re in serious trouble. If you’ve been keeping current on all of your payments while getting deeper into debt, you at least have a chance to help yourself out. Call all of your big credit card companies (Visa, Mastercard, Discover) and ask for a rate reduction. If you’ve kept up on payments, most of them will offer you a reduction, which can save you a lot of money in fees, and in some ways immediately reduce your payment amount.

Next, if you need a quick infusion of cash and have a car payment, call them and ask if you can delay payment for one month. Most auto loan companies will give owners upwards of 10 times during the life of a loan where they can delay payment a month, though you will pay a very small fee and your loan will be extended a month for each delay. Still, it’s a nice way to get a one month jump on some funds that might help you get over, or caught up, on some delinquencies.

7. Get a part time job. Yes, I know this one everyone hates. The thing is that there’s only so much one can hope to save while trying to cut expenses, and a nice part time job might add at least $200 to your cash flow during the month, often much more. Of course if you work a full time job with lots of overtime this might be hard to do, but for most people, that’s not a concern.

Here’s the thing. There are different kinds of part time jobs. If you can write, you might be able to find some freelance writing work that could earn you some nice pay and you won’t even have to leave the house. Maybe you can find something that fits a particular skill you have. In Loral Langemeyer’s book The Millionaire Maker, she often makes that a part of her recommendations for clients who work with her, and many of them have found that it turns into a better career than the one they’d been doing, makes more money, and they enjoy it more.

Following these tips will get you out of debt, though it’s not an easy process and could take awhile. However, alleviating the worries of whether or not you will ever be able to overcome your debt will be a big benefit to you once you see what you’re up against, and you’ll love the feeling of independence that you’ll end up giving yourself.

See more:
10 Steps to Overcoming Credit Card Debt

How to Negotiate A Credit Card Settlement

How do you plan to get ahead? Ways to Increase Your Income

Money Saving Tips for Debt Relief

With the economy as it currently is, many people are starting to find themselves getting deeper in debt by the day. Many are finding that they have much less disposable income and are having to go without certain items, including cutting back on their favorite hobbies and interests. Rising credit card debt and interest rate hikes have also prevented many from turning to their credit cards.

Before you get too deep into debt, you may have to start considering whether to declare bankruptcy, which will harm your credit report, or take out a debt consolidation loan, which may end up costing more money in the long run.  Another option is to take out a home equity loan, or home equity line of credit. A problem with this is that you risk losing your home if you default on the loan. The best advice is to try to develop a system to start saving extra money each month.

Below are a few ideas on how to save extra money that can be used to pay off some of your outstanding debt, while reducing your carbon footprint at the same time.

Saving extra money while reducing the harm done to the planet might give you more motivation to actually continue with these practices. Most are simple changes that can be made to our everyday lives and schedules. Some are a little harder to implement. Remember that saving money and reducing your debt is hard work and is a goal that must be taken seriously to achieve the most reward.

• Carpool – Gas prices fluctuate, but they have one thing in common, they continue to rise over time. Carpooling or taking public transit will save money on gas while reducing the amount of exhaust fumes released into the atmosphere.
• Timers – Placing timers on water heaters and thermostats reduces the amount of electricity used and therefore will save you money on your utility bill. The less electricity you use, the lower the demand on the resources necessary to produce that electricity.
• Recycle – While this won’t always save you money unless you actually collect the deposits on bottles or scrap metals, it drastically cuts back on the power and natural resources needed to produce these items. Recycle kitchen towels rather than buy paper-towels and look for other reusable items over disposable ones.

These are just a few ideas on how you can make a difference relating to your bills and the harm done to the planet. There are many ways to lower your impact and save money at the same time. Use these or others that you think of. The important thing is that you do something.

See more:

How Does Recycling Save Money?

Money Saving Ideas for Frugal Moms