Tips 5, 6 & 7 to reduce your debit. (According to author and columnist, Gail Vaz-Oxlade)
Previously it was suggested that you may want to ..... redirect those payments (payments made to college loans for your children) towards eliminating your own debit sooner. Put together a 20 month plan, cut all spending that is NOT critical. Don't forget to set small reachable goals and reward yourself in some way. Let's face it, we all need to have some fun.
Tip #5 Chip Away At Your Debit - To reduce debt, make a list of every single debt that you have and rank them in order of the highest interest rate, not the highest balance. Pay off the highest interest rate card first. Every time you have extra money, throw it at the debt you've targeted until it's gone and then stop using that card! Pay only the minimums on the other debit. Making a checklist and crossing out the debt, you'll feel better as you start to see it disappear. When your debt is paid off, take the money you were allocating for debt repayment and put it towards savings.
Tip #6 Keep Things In Perspective - Getting out of debt isn't easy, but you have to remember that you cannot let debt consume you and hurt your relationship. You and your partner need to work through the debt together, making sacrifices but focusing on what's important as well - your family and your relationship. Make time to do something special with your spouse so you can remember why you fell in love, set time aside to do group activities as a family to involve the kids as well. Don't let your debt get the best of you.
Tip #7. Getting Out of Debit Does NOT Mean You May Never Spend Again - When working your way out of debt you can still spend on things that are important to you, you just need to plan and save for them. For example, if you really love to travel, don't cancel your trip for the year, figure out a way to do it on a tighter budget and save a little each month for it so you don't have to put it on credit cards.
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