Debt Busters and Dieting - What?

Debt busters are like diets. How's that? People are always searching for ways to lose weight quickly and painlessly...almost magically. Instead of buckling down and doing the inevitable - cutting back on calories and exercising - they continue to look for the magic pill.

Same thing with debt. Debt busters...the name gives you the impression of paying off debts quickly, painlessly, and almost magically - doesn't it? Well, there are ways to pay off your debt, but unfortunately, they're not quick, painless, and certainly not magical.

If you want to get out of debt, the bottom line is you have to make up your mind to buckle down and do what you've got to do. What's that? Here are some tips to get you started.

Don't Pay

What? No, this doesn't mean you don't have to pay your bills. It means don't just pay the minimum balance on your bills. If you plod along, month by month, just paying the bare minimum, you will be plodding along, month by month, for the rest of your life.

Bite the bullet. Get it over with. Pay as much as you possibly can every month so your interest rates don't eat you alive.

For example, let's say you have a balance of $5,000 with an annual percentage rate of 14%, and are required to make minimum payment of 2%. If you only make minimum payments, it will take you 22 years to pay off your credit card. To make matters worse, you will have $5,887 in interest payments. Disturbing isn't it?

Now, if you increase your payments to $125 a month, you can pay off this debt in less than 6 years with only $1,775 in interest. Doesn't that sound much better?

Where do you get this extra money to make higher payments? You cut back. Start keeping track of all the money you spend. Just like when you're on a diet, you have to keep track of all your calories - there's that diet analogy again - you have to keep track of the money you're spending. You'll probably be shocked.

Here are some things you can probably cut back on that will become your "debt busters":

Eating out - You could easily save $25 to $100 a week by cooking simple meals at home. Don't let the commercials fool you - it's much cheaper to eat at home.
Entertainment - You don't have to go see every movie that hits the theaters. Stay home, snuggle up on the couch with your family and rent a DVD or watch some oldies. Hey, they're at least good for a laugh.
Clothing - Wear it out. You don't have to have the absolute latest styles and neither do your kids - be retro.
Trips - Stay home. There are plenty of fun and interesting things to do right in your city that you've probably never done before.


So, since this isn't going to be quick, painless, or magical, should you even bother? Of course, you should. By planning and using common sense, you can definitely get out of debt. Instead of looking at this like drudgery, look at it like a challenge.

Challenge yourself to see how much you can save on your utilities, food, and entertainment.