Eliminating Debt Requires Spending Less Money

Levels of consumer debt are at an all time high in America. The ramifications of this fact are staggering. Personal bankruptcies have become common place. Retirements have been delayed, credit has been ruined, and marriages have ended. How have we reached this point? There are several contributing factors but the bottom line is that people have resorted to spending more money than they are making, pure and simple. In order for families to regain a sense of financial stability they need to begin to live within their means. There are countless sources which can give you beneficial advice about how to go about this task in general terms. They will talk about creating budgets and cutting costs and they are absolutely correct. The problem is that many individuals have trouble translating this general advice into practical action. It is our hope that this article will help fill that gap and provide specific practical steps that can be used to lower a family's outflow and reduce it's debt. Some of these tips may be viewed as extreme but many families find themselves in situations where serious measures are needed.

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Practical advice to save money and reduce debt

Use only one credit card at the most. This eliminates the possibility of running up charges on multiple accounts. It may be in the best interest of some to eliminate the use of credit cards all together. Once your cash is gone your purchases will stop.
Do not use credit cards that charge an annual fee. There are an endless number of cards to chose from that do not have attached fees.
Always pay off your monthly credit card balance in full. The first month you can not make your payments cut up the card and begin using cash. This will help eliminate further accumulation of debt.
Create a list before you go shopping. This works well for grocery shopping or shopping of any kind. When arriving at the store get the items on the list and leave. Browsing around often leads to unnecessary purchases. Eliminate "window shopping" trips.
Pay off your smallest bill first. When this bill is paid in full take the money you had been spending and contribute it to the next highest bill. This is an effective way for paying down your debt.
Purchase term insurance. Term insurance is cheaper than whole life. If you are interested in the savings component of whole life, be aware that there are far better investment vehicles that are available.
Purchase a used car. A reliable used vehicle can be much more affordable as well as costing you less on auto insurance.

Buy items in bulk. This reduces the per item expense.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.