Virtually Everyone Who Is In Debt Wishes He Or She Was In Less Debt

Category: Finance.

Virtually everyone who is in debt wishes he or she was in less debt. It should not come as a surprise that many consumers simply have no idea where a sizable chunk of their income goes each month.

For the purposes of this article, debt is anything that you pay for with cash or credit during the course of a week or a month. This invisible debt can add up quickly, but it can also be easily identified with a little bit of effort. This might include such things as auto loans or rent payments. There are some financial obligations that are fairly static and remain the same throughout the life of the loan. Generally speaking, these types of loans have a set payment amount and that amount is due month in and month out until you pay off the loan. The debts that can be manipulated are those that you have more control over. These debts are difficult to manipulate, and for that reason they are not a part of the debt reduction tips listed here.

Some of the debt, or if you prefer expenses, that you do have some control over include such things as groceries, entertainment expenses, lunch expenses, and clothing expenses. The only effective way to get a handle on your controllable debt is to know what it is. Other types of debt that you have at least some control over( in most cases) include such things as auto insurance premiums, internet fees, life insurance premiums, utility usage( water, etc, electric) . To do this, you have to make a list, of what you, a daily list are spending your money on. From carfare to coffee, if you pay out money for something, jot it down on a piece of paper. This list should include everything that you buy. At the end of a week or two, you will have a very good idea of where some of your money is going.

For example, let s say that you spend a dollar each morning for a newspaper and two dollars for a cup of coffee. One of the more remarkable things that these simple daily lists can do for you is show you how even small amounts of money spent each day add up over the course of a month. Then you spend five dollars for lunch, Monday through Friday. At the end of a month you would have spent eighty- four bucks for papers and coffee and one hundred dollars for lunches. At the end of one week, you would have spent twenty- one dollars for papers and coffee and another twenty- five dollars for lunches. That is nearly two hundred dollars that you could easily save or reduce.

Most consumers have no idea how much money they can save when they become more diligent in cutting off appliances and lights that are not being used. If you spend more for coffee and lunches, your savings increase if you cut back on these expenses. Consumers who have good driving records can often simply ask for a better rate on their auto insurance and get it. By simply asking for better rates, consumers can often get them. The same can be true with life insurance and even with credit cards. It really is that simple. You might be surprised at how much money you can save.

Why not spend some time investigating what you can cut back on?

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