SIX- STEP DEBT DIET
1. Face reality
Many people ignore their debt problems until it’s too late. The worst thing you can do is ignore it, hoping things will work out. The sooner you act, the better off you will be.
2. Ask for help
If you’re in trouble, talk about it. Credit card companies and financial institutions will be much more lenient if they know you’re trying to tackle it.
3. Control your spending
For the next month write down everything you spend, then examine it. You’ll be amazed – and maybe a little horrified – at where your money has gone, but you’ll think twice in future.
4. Stick to a budget
Balance your family budget and develop a debt- reduction plan. The fastest way to pay off what you owe is to make extra repayments.
5. Don’t fall in to the minimum trap
The monthly credit card bill looks horrific, but you take comfort in the much smaller minimum balance owed. Big mistake. It will take years to eliminate debts if you only make minimum repayments.
6. Pay off your most expensive debt first
It’s common sense, but pay off the debt with the highest interest rate first.