Credit Card debt and other forms of debt have been plaguing many Americans for years. The problem of excessive consumer debt has continued to grow without any foreseen end in sight. Is it possible to pay down debt, save money, and invest at the same time? Yes, in certain circumstances it is. Let see what actions you can takeGet out of debt and save moneyYou are not alone; many people are facing the same situation as you, a mountain of debt with no way out. The burden of credit debt and other consumer debt has permeated every echelon of our society. Overextended bill payments are garnering the major proportion of household incomes, leaving little if any cash flow. However, there is light at the end of the tunnel. If you can become disciplined with your finances, you can have long-term financial success and peace of mind.Track expenses and curtail spending. Start noting your monthly expenses. If you have Excel, uses a spreadsheet expense tracker, if not, just write down expenses in a dedicated notebook. Only by seeing your expenditures in black and white will you have a realistic idea of your spending habits. For some it will be an eye opening exercise meaning you might discover you are spending more than you thought. So what is the point of this exercise?The main reason to track your expenses is because it is an integral component of budgeting. How can you determine to cut back when and where unless you know what your expenses are? After tracking your expenses for a period of time, you can get a good idea of your average expenses over time. You can also determine where the best opportunities are to curtail your spending and using your credit cards. Determine your cash flow. Cash flow in simple terms is your cash outflows minus your cash inflows. Calculate your cash inflows by including your net income, income left after all deductions and taxes. You can calculate outflows by adding regular monthly expenses such as, mortgage or rent payment, utilities, food, fuel and transportation, loan or credit card payments, child care, and other regular expenses.By deducting outflows from inflows you will have a factual understanding of your true net cash flow. A positive net cash flow means you have some money to invest and save, a negative number means you are spending more than you bring in.Save money. The rule of thumb in the financial industry is that you should have at least three to six months of living expenses in case of emergency. It is recommended, to put money into a savings account at any time, the important thing is that you do so on a consistent basis. If your cash flow increases over time, increase the amount you save on a regular basis.Reduce your debt
Pay off your highest interest rate debt first, in most cases those are credit cards. Avoid making minimum payments. If you have to perform a debt consolidation. A credit card consolidation involves placing all of your card debt onto a lower or zero interest rate card. Make sure you understand the terms of the balance transfer offer. You can also consolidate all debt by paying off the debt with a home equity line of credit (HELOC). Again make sure you clearly understand the terms of the loan. If you are need professional guidance, seek out the services of a reputable debt counseling, credit repair or credit counseling service. Read the term of their services and compensation clearly.
All in all, the key to long-term financial success is discipline, education, motivation, and consistency. You can do it; it wont be easy but stick it with. It will be well worth it at the end.