Debt Reduction in the New Year

Are you like so many people today that have debt that they wish they could pay off? Are you one of the many who desires to become debt free? If this sounds like you or someone you know this post is exactly what you have been looking for. First, there is no shame in having debt as it happens to the best of us and people get into debt for various reasons. Some people do not budget properly. Others experience an emergency and either do not have an emergency fund, or they have one that is not adequate. But being in debt or having even large debts is not the end of the world for you and your family. The key to getting out of debt is not that complicated and in many cases can be done by anyone and by people with all kinds of income levels. The key is wanting to get out of debt and making the changes needed to ensure you change your habits and attitude towards money and finances.

First, before anyone can get out of debt, they need to know what is happening to their money.So how do you do that? You develop a budget or spend plan for your finances. Now, there are many ways in which someone can prepare a budget, or you can find already prepared templates for budgets on many different websites. Now by reading this post, you have an opportunity to get not only a spreadsheet that will help you budget but also one that will help you get out of debt as well and one that the whole post centers around. To get these, all you need to do is sign up for my email newsletter on the form at the end of the post. If you do not want to sign up for the newsletter, you can purchase the spreadsheet from Fiverr at http://bit.ly/2yInTVK for a $10 charge. Or if you want a full complement of financial spreadsheets you can get a set of them from my affiliate Simple Planning for a $40 charge at http://bit.ly/2q7dbjS. I will be developing a series of YouTube videos in the coming months on the best way to use both of these budget tools to get the best results.

So now you have your budget tool that you will use to determine where your hard earned money comes from and goes. That is key to this entire process, and that is knowing what you have to spend and where you are spending your money. Here you will see what it is you have and how you can cut costs or create savings in your spending habits. You may have to track this for a month at least to get a clear picture of your spending, but with a little patience and practice, you will have a workable budget to operate off of in the future and especially for your debt reduction that we will look at next. If you are having trouble do not worry as the next videos I work on will be the ones to help you budget your hard earned money.

Okay so now you have your budget and are ready to start on your path to debt reduction. How do you get the tool I am about to discuss? Well, if you signed up for my email newsletter you already have the debt reduction tool. If not, like the budget spreadsheet, I offer the debt reduction spreadsheet on Fiverr as well at http://bit.ly/2rG3uh3, for a small $10 charge. Now I will not go into how the spreadsheet works in this post as the purpose of the post is to announce that you will be able to view the YouTube video on the spreadsheet and how it works at http://bit.ly/2AC3bo0 soon.

If you are familiar with Dave Ramsey or Suze Orman, the spreadsheet is based on their popular approach of the snowball debt reduction method. The reason you need a budget is to see what you are paying in minimum payments and what you can afford as your initial snowball amount. Then you take these figures and plug them into the debt reduction spreadsheet to get your payment schedule to see how long until you are debt free. And the key to success is not to incur any additional debts while you are paying off the ones you have and to keep the snowball amount constant as well. If you can do these two things the spreadsheet will work exactly as it should, and you will be well on your way to becoming debt free. And once that is done between your new spending habits and your use of a budget you will be able to maintain a debt-free lifestyle.

Unlike many financial gurus, I do not believe that there is no place for debt and credit cards in your life provided you use them both wisely. So what do I mean by this? It is simple and easy to understand really. Especially in today’s financial environment having a mortgage makes sense to me. Why are you asking? Simple math really, you can make more investing the money you would have spent on your house as compared to what you will pay in interest on that mortgage. Now here let me also state I am only talking about a mortgage on a primary residence and not rental properties as they are seen as investments themselves, and I recommend an entirely different approach to those. And the use of credit cards is not inherently bad provided you use them wisely and pay them off in their entirety every month. So why not just pay cash? Well, some credit cards offer rewards for their use and can offer some protection on the items purchased. But try to avoid the reward cards that charge an annual fee unless you will use them enough to make up for that initial charge.

Debt reduction is within everyone’s grasp and can be in yours as well. If you want the budget and debt reduction tools for free, simply sign up on the form at the end of the blog post, and if you do not want to get them for free, you can go to Fiverr and purchase them for a small charge. And if you want to get a collection of spreadsheets I really do recommend my affiliate Simple Planning for the entire financial collection of spreadsheets. You can get them for $40 and for about $60 you can get the lifetime updates and online access to store your work. The second option is what I finally opted for after using them for several years myself.

Start working on your finances today and get a jump on your financial freedom. As always, if you have any questions or comments feel free to leave them here or contact me privately.

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