Wednesday, February 15, 2006

Debt Management and Elimination

Previously, I gave examples of ways to cut your expenses to use that money to pay off your debt. I discussed how looking for less expensive living quarters and/or moving closer to your employment (to cut travel expenses), may help cut corners.

Now if you don't want to take it from me, here is an article found on MSN Money written by M.P. Dunleavey. It highlights many of the suggestions I made, plus a few more.

The article suggests an individual question choices made in a few major areas of life, to see where drastic changes can be made to save some big dollars.

Here is an excerpt of the article with a quote from Financial coach Steve Rhode, author of “Eliminate Your Debt Like a Pro,":

Drastic debt calls for drastic measures
Or, as I say these days, you gotta practice Extreme Debt Reduction. In other words, slashing the comfy way-of-life expenses we are all attached to. Here are the top four for the average American family, according to Rhode:

Where we live

What we drive

Where the kids go to school

Vacations, vices and other big-ticket indulgences (Can anyone forget Carrie Bradshaw’s $40,000 shoe collection on “Sex and the City”?)

My husband and I didn’t want to change our way of life any more than you do. But there is nothing like the nasty taste of a thousand bucks a month going down the Visa toilet to change your mind. Fast.

It makes you think, huh? Sometimes, becoming enslaved to debt is not just a product of a few wrong purchases, but a collection of lifestyle choices.

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NCN said...

good post...
I have found that gathering debt can be like eating the wrong food or drinking to "think" that you have it under control, and before, it is controlling you...
glad to see that you are making positive finanical decisions...keep up the good work

MrsEm said...

You're not alone in facing your debt problems. I just read online that even George Washington had trouble keeping his debts under control.