Monday, May 12, 2008

Debt Reduction Tips That Work by Steve Hill


This credit crunch is hitting many of us hard. As well as rising mortgage repayments we also have to contend with higher fuel, food and commodity prices. Some would say that it is rather unfortunate that all of these increases seem to have come at the same time; others would argue that it is down right shameful. Many people are becoming deeper and deeper into debt with seemingly no way out, at least over the short term. So what can we do to reduce our debts during these most troublesome of times?

To put it bluntly, we need to curtail our spending of non essential items. The buy it now, pay later culture of the late nineties has to change. It is time to tighten and brighten up for those of us who are in debt. At this stage we need to be disciplined in what we do and do not buy. Forget the fancy clothes, electrical equipment and holidays.

Where possible we need to ensure that we make our debt repayments as to have an adverse credit history in these difficult times could well make obtaining credit impossible in the future. When making these repayments, do not just make the minimum payment as this is not likely, in the majority of cases, to reduce the debt, it is likely that you will only be repaying the interest. The idea is to pay as much each month that you possibly can as this is the only way that the debt will be reduced.

This is the time to take up a second job to help supplement our income. We need to ensure that we have more coming in than we spend per month on our outgoings.

When purchasing food items, look for bargains, only buy what you need and ensure that you always check your receipt, I am often amazed at how many errors are made, especially on the buy one get one free offers.

For those people who still find that the above is not enough to help reduce your debts it would be prudent to seek the advice of a debt specialist.

About the Author

Steve Hill is a webmaster from Birmingham, he has interests in a number of websites including: stuttering UK debt specialist cheaper calls to mobiles

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