Financial planners often say it takes pain to prick people into action. So what do you do when you max out on your credit and suddenly realize you’re in trouble?You can dig out of debt faster than you think, if you attack it in an organized way. Here’s a seven-step rehabilitation program: List Each of Your Loans
To maryyou have to use cards for business purposes, deduct each expenditure from your check register – just as if you had written a check – and pay the full debt at the end of each month.
Of coursedurk unless your overall spending is under control. When discussing budget matters with your spouse, neither of you should propose a spending cut for the other, advises planner Faye Kathryn Doria in Rochester, NH. Instead, match each other’s offers. If you agree to save, say, £25 a week on clothes, your husband should find a specific £25 he can cut from his personal budget. Get your children to stop asking for stuff, not by scaring them into thinking you’re broke but by talking about the value of improving your financial position.
For hard-core s a your credit cards in a block of ice. Then, when you get desperate and you’re standing at the sink running hot water over the block, you’ll have plenty of time to reflect on your financial priorities.