If you have been asking yourself, How do I get out of debt? you may find one of my many suggestions below helpful, or it may be a reminder of what you need to get back to doing again. though obvious to some, the idea is for you to free up money in order to pay off your acquired debt, whether it be medical bills, credit card debt, a home equity loan, etc. This first step that I have explained below only requires a little effort in a very short amount of time, and it is just the beginning to being debt free.
How Do I Get out of Debt?
Step 1: where I've made some of my greatest savings to pay toward my debt was shopping around by phone to lower many of my monthly bills.
I first called around for the cheapest home insurance quote. Granted, you may already have a very low premium, but I went from paying close to $800 a year down to just over $300 for the same coverage with a different company. I was now saving myself $41 a month in home insurance. You may be thinking, Big deal, $41 - that's not going to get me out of debt. Hold on though, we're just getting started.
Next, I changed my car insurance to the new company that I just purchased home insurance through. I went from paying $112 a month to $82 a month, so now I'm saving $30 a month to pay toward my credit card debt, but that's no where close to paying off the amount that I owe in the time frame that I want to do it in, but I was starting to feel some power and hope. Total savings a month is now $71.
This next one surprised me because I thought I already had a low rate. I was paying $35 a month for a $150,000 life insurance policy, but I was able to find a better deal elsewhere, so now I'm paying $25 a month for $250,000 in life insurance. The key is to talk to friends and relatives about suggestions or ideas. Ask around and make phone calls because there are better deals out there without losing the quality of service. Running total so far is $81 in savings a month.
Then, I called around to several internet providers looking for the best rate without losing speed because there's nothing more irritating than slow service, especially when you're used to high speed internet already. After diligently calling around for about four days I settled on one that now saves me $36 a month. I went from paying $65 down to $29 a month without losing any speed whatsoever, and as long as I call before the 12 month special is up I can have it locked in. This way I'm not cable jumping for the best package every 12 months. what am I up to? - $117 in monthly in savings.we're getting somewhere now.
After switching internet providers I simply dropped my phone service with the same company where I was paying $30 a month. instead, I purchased Magic Jack for a whopping $20 a year. After doing the math I figured I'm now saving $28 a month with a phone service I really don't miss. Magic Jack does take some time getting used to, but everything does. Now I can't imagine having anything else. My running total is now up to $145 a month in savings. I was tempted to drop my cell phone service altogether because I was feeling desperate, but after thinking about it I just modified my monthly minute plan. I went from paying $55 a month to $35 a month for 300 minutes with free calling on weekends ($20/mo. savings). Now I'm up to $165 in savings per month.
Finally, I cancelled my cable TV ($67/mo.) and picked up a basic package with a local Dish network ($29/mo.) to save myself $38 a month. I really miss my sports channels and my wife misses her TV show Snapped but like everything else, you get used to it. I am now saving myself a grand total of $203 a month for simply doing a little research and phone calling, and it all cost $0. I am now able to use that $2,436 of savings per year to pay toward a credit card debt. Note: I did appeal my high property tax since I'm paying $3,300 a year for my 1600 sq. foot home, and due to the recent decline in property values I figured it was worth a try. I was unsuccessful; however a close friend of mine was able to have his lowered by a significant amount. everybody has a different circumstance, so you may want to consider it because again, it costs $0.
How do I get out of debt? Remember, this is just one step that you may start today. Make a list of your monthly bills and determine which ones have the potential to be modified or even dropped altogether. I hope you are even more successful than I was in your monthly bill savings. Saving money on manipulating your monthly bills is a very easy task, but I do encourage you to not be hasty and switch to the first company that offers you a lower rate because you want to find the best quote so you can save the most money. Speaking with a debt counselor is also a way to acquire more ideas for the best path to take. your discipline and sacrifice will depend on your willingness to be debt free.
The First Easy Step To Getting Out Of Debt
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