Debt Management Tips for Single Income Families (cont.)
Contributed by Gina Mcmullen
Debt Management Tip #7
Here's the basic plan for getting out of debt: take all your debt obligations and list them out on a piece of paper. If one is financed at a much higher interest rate than the others you will want to start with that one, but otherwise start with your smallest debt.
Free up every last cent you can for debt reduction (even if it means eating ramen noodles and macaroni and cheese five nights a week) and pay the minimum payment on all other cards and place the remaining debt reduction balance to the smallest card. Then, once that is paid off, take all that money plus what you were paying on the next in line and apply it to the next smallest card and so on. Before you know it you'll be debt free!
Debt Management Tip #6
If an emergency necessitates your using your credit card or other form of credit, that is one thing, but eating out and buying gas should not constitute emergencies. Since you have decided to live the one income life style, try making changes in your spending that will last the rest of your life. Much like healthy eating will establish a life time of good health, so too will healthy spending establish a life time of financial health.
