So …you've tried everything you can to get ahead, and still times are tough, and they seem to be getting tougher as time goes on. It appears that every step forward you take, you take three back. You feel as if you are in a overwhelming state of financial despair, and can't see the light at the end of the tunnel.
My first words of advice: don't do anything out of desperation…those things that you think are a quick fix that you can “make up for later”. If your financial situation is bad now, I assure you it will only become worse later if you don't plan carefully now. I speak from experience, as well as watching helplessly while my friends have placed themselves in financial ruin.
I will share with you the advice I have given others, so you can carefully consider your next move.
- Don't refinance your home to consolidate bills. The only thing this will do for you is give you a higher house payment, and if you cant make that payment, you are in danger of losing what you worked for. It will also open up that line of credit that caused you trouble in the first place!
- Don't trade up for a newer car. You will wind up paying for the new car, and the remaining balance of the one you traded. That loan will be “upside down” so to speak, and if you choose to sell that car, you will not get what you owe. If you cant live with the car you have, sell it and downsize to a car and a payment you can afford.
- Strongly avoid the “get rich quick” scams. If it sounds too good to be true, it is. Read the fine print on all of these offers. You CAN start a small business on your own, without breaking the bank. Start by researching small business plans with low start-up costs, minimal monthly purchase and selling requirements. You may need to consider that not every home business opportunity is not for you.
- Don't fall for the “we can fix your credit” scam….the only way to fix or repair credit is to make your payments on time, get the creditors paid off, and wait a period of time for the negative items to be removed from your credit report.
- Sign up for a free or community based debt consolidation service. Consumer credit counseling service is a community based and funded program. They make you stop using credit….not a bad idea when you are bent over the barrel.
- Find ways to make extra income. Consider home based opportunities, mystery shopping, merchandising, newspaper delivery, or pizza delivery. Look for something flexible that won't interfere with your primary source of income.
- Take a community college course in getting out of debt fast. In most cases you can get out of debt completely in 7 years. Read books on getting out of debt and money management, and educate yourself.
- Find ways to live more frugally, less is more. You can find frugal living websites on the internet.
- Prepare ahead of time to avoid wasting time and gas, as both are precious. Plan trips ahead of time so you can combine errands.
- Clip coupons, and find a store that doubles them, and make an adventure out of it. I personally saved ½ on my grocery bill today alone with coupons. Consider it a job, an adventure, and a challenge to see how much you can save!
- Clean your house, and e-Bay what you don't want or need anymore. This could put a bit of cash in your pocket right away. Consider having a garage sale, at a prime time during the year. Spring is coming, and people that love garage sales and salvaging will be on the hunt early!
Keep that smile on, keep that attitude positive, and get moving.
