Guest post by Sophie Kinsella
In the US the exploding debt continues to become colossal after the recent economic downturn. In this situation, people usually enroll in a debt settlement program to eliminate their financial owes. But you need to be sincere towards paying off your debts as a proper debt elimination plan helps to attain financial liberty.
1. Prepare a budget:
A perfectly planned budget helps you track your expenditure so that your expenses do not exceed your income. You can create an excel sheet where you can update your daily expenses as it will help you calculate your monthly expenses. You can curb your lavish lifestyle once you track your expenses. Once you start saving extra money then you can use it towards paying off your debt. Make sure that you do not dissuade from the budget plan otherwise you might get back into the dark pit of debt.
2. Try to eliminate your credit card debts:
Credit card debt is considered to be perpetual liability therefore it is advisable to pay off your debt immediately. Try to prepare a list of debts in descending order of the interest rate. If you pay off your high interest debts then you can save a considerable amount of money. After you pay off the high interest debt on the top of the list then you can continue paying the next debt on the list and make minimum payment on the remaining debts. But before you start paying off your debt make sure that you negotiate with your creditors to lower the interest rate on the principal balance to make it affordable to pay off.
3. Transfer your balance:
You can transfer your balance of your high interest credit card to low interest credit card. But you need it be careful that you pay off your debt before the expiry of the introductory rate. But if you are unable to pay off your debts before your introductory rates expire then the card will jump back to same high interest. Your situation might get worse therefore it is essential to have a proper financial planning that will help paying off your debt within the introductory offer.
4. Increase your source of income:
You can increase your source of income by working as a freelancer. Along with your permanent income you can get some extra money by working as a freelancer. You can give a room of your apartment or garage on rent to raise money to put towards paying off your debts. You can prepare cookies and biscuits at home sell it to your office colleagues. And use this extra money towards paying off your debt so that you can liberate yourself from the burden of debt.
During a coaching session I asked one of my clients, “What’s the lesson you need to learn about money?”
She considered the question for a moment and replied, “I feel like I need to learn that money is more than just paying the bills.”
“That’s great!” I said, “If money were to be more than just paying the bills for you, what would that be?”
She was quiet. I anticipated that she would say something to the effect of, “I’d like to open a savings account so I could have extra money to buy clothes.”
However, she surprised me with her response. She revealed to me that she would like to purchase the property adjacent to her business. She was very excited about her idea, but
then quickly digressed into listing many reasons why she could never achieve this goal.
“I don’t get along with the current owner – he’d never sell it to me.”
“I don’t know anything about purchasing business property.”
“It isn’t for sale.”
Determined not to let her initial inspiration pass, I gently interrupted her “I think you have a fantastic idea! Would you be willing to play a game with me?”
“Hang up the phone, call me back, and pretend that it’s two months later and you just purchased the property and are calling to tell me about it.
We hung up. After a few minutes she called me back and said, “Well, Leslie you’re not going to believe this…”
She then went on to provide vivid details about how she had purchased the property. Pretty impressive for someone who had originally said she had no idea how to go about purchasing property! I asked her to write down our conversation in her personal journal and to put a date on it.
One month later, my client called me during our regular session and said, “The property next door just came up for sale!”
She was nervous and uncertain once again about how all this would come to pass. Because she is a very “visual” person, I asked her to take a photograph of the building and to paste a picture of herself on top of the photo, and to place the photo on a silver platter (because she had stated during our initial role playing session that it happened so easily, “as if the property was being handed to me on a silver platter.”
My client recently closed on her new property.
Use This Story to Inspire Results in Your Life
My point of is to inspire you to think about creative ways that you can make your goals a reality RIGHT NOW. Get excited about your goal, write out your goal, create a visual picture of it and get whatever support you need. The mind sees in pictures, so the more visual the image, the more effective the mental imprint.
Take One Minute to Create Your Future
Take one minute to do a very simple exercise. Consider just one goal that you would like to achieve in your life. It might be simple or grand, whatever resonates with you. Quite often it will be the first thought that pops into your mind.
Got your goal? Now grab some paper and a pen. Yes, get out of your chair and grab a piece of paper, an index card, the phone book – anything will do! Now write your goal down in past tense as if it has already occurred. Make it very specific. Include a date that you want to accomplish your goal. Now put it where you can easily see it every day!
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From the moment you first step into the market you are instantly greeted by the lively energy. The vitality there is quite a contrast to the stagnant energy you might experience at most other places of business, where it’s not uncommon for salesclerks to offer barely if any eye contact. Read more
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Financial Help for Married Female Entrepreneurs- You can Create an Unstoppable Vision that Will Transform Your Financial Life and Your Marriage
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*Please feel free to substitute language that you are most comfortable using so that you get the maximum benefit from the concepts and ideas in this article… you may want to use “higher power”, “spirit”, “universe” or “higher source”, etc., in place of “God” as you are reading this article. Read more