Recent headlines:

Get Out of Debt Fast: Have More Cash

Posted by Graham on Aug 10th, 2009

Paula (not her real name) used to avoid the post office, fearing yet another bill. She wouldn’t answer the phone as the caller might be a debt collector.

Using these simple techniques, Paula was able to reorganise her finances.

After she has made the changes, Paula told me how she felt the day she went to the post office and picked up the envelope from the power company.

In it was her electricity account. She went cold in the stomach, and then remembered that she had been putting money aside for this. She immediately opened the envelope and saw that the bill was a little less than her budgeted allowance in her bills account. She told me she burst into tears, her relief was so great.

Paula learned that it’s not how much you earn it’s how much you keep.

She learned that bills that don’t come regularly have to be allowed for, and how to do that so no effort is required. She learned the age old technique of budgeting and how to use modern bank accounts to make it happen.

To get out of debt:

Stop getting deeper into it. Spend less than you earn.

Set up a budget.

Automate it.

Write down all the debts

While paying the standard payments on all of them,

Pay dramatically more on the smallest debt.

When it’s gone, start on the next debt and add the payment for the debt you just cleared to the new one.

and repeat.

Graham Couper-Smith

co-author of ‘Recession Proof Yourself’

detailed instructions for how to do what Paula did are in the book.

For the book and more hints and tips go to:

www.manageyourfinance.com.au

2 Comments to “Get Out of Debt Fast: Have More Cash”

on 15 Aug 2009 at 10:58 pm1A Dawn

this really is the best way to get out of debt. spending less more than you earn will help us to save something. going one debt at a time will also help us breathe a little space and think of the next step on how to move to the other one.
on 17 Aug 2009 at 1:00 am2A Dawn

this technically is the basic step in getting out of debt. spend less more than you earn will help us to save something. its how to cope up in paying with your debts. getting first with the small ones will also give you time to breathe and think of another step or maybe lessen the pressure in dealing with the remaining “big ones!”.