More (Creative) Ways to Dig Yourself Out of Debt

When I was a whole lot younger and lot more foolish (as compared to being a whole lot older and STILL a bit foolish) I used to spend like there was no end in sight, (which is difficult when you only have a dollar in your pocket to begin with). Before I knew it, I easily racked up some significant debts. With those debts came Life Lesson #1: "It's a whole lot easier to get IN debt, then get OUT of debt." This lesson is followed by the response: "Now What?"

Debt can paralyze you. Credit card debt is especially difficult to escape. Credit card offers are not only tempting but plentiful. I have one credit card, and still get several offers every month. You can easily lose track of how much you're spending on your credit card until the bill comes in.

Does this sound familiar: if you've charged more than you can afford to pay for right away, you'll owe interest on your balance. And guess what - if you can't pay off your balance the NEXT month, MORE interest is added. Now you're paying interest on the interest! And just like the proverbial hole that keeps getting deeper, when the interest starts adding up, over time you could end up paying more interest that the actual cost of the item you charged.

I'm probably preaching to the choir when I say you shouldn't be charging on your card with money you don't have anyway. But let's say you do. Keep in mind that the ripple effect of too much spending and too little paying can lower your credit score. And a low credit score represents a credit risk. That is something prospective employers, insurance companies, and lenders don't like. A low credit score can impact your ability to get everything from a car loan to an affordable mortgage.

Take control NOW. Here are a few strategies that can help you dig your way out of debt. It may not be easy. It may take some time. But eventually you'll get back on your feet.

A "financial hole" that someone recently dug themselves into. Apparently they were able to get out.

Credit: www.digahole.com

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