Hundreds, thousands, even millions of individuals are in debt these days. If you are in debt, the first thing you need to know is that you are not alone. While that may not be an answer to your debt problem, it is comforting to know that you are not out there alone in your debt situation. There are many ways to break the debt cycle.

Too Much Outgoing Not Enough Incoming

One of the main reasons that you are in debt is simply because you have too many outgoing expenses and not enough incoming cash.

One of the ways to resolve this is to, obviously, increase your income. If this means that you have to give up something, then you have to give up something. The end goal is to get out of debt and you may have to give up some free time to work extra hours. You may have to put off going back to school and you may have to give up watching television.

With the internet and many ways to make money, it’s really not that hard to bring in a couple of extra dollars at the end of the week. Retail stores are always looking to hire seasonally as well.

Balance Transfers and Loans

If you have good credit, even though you have quite a bit of debt, chances are that you can do a balance transfer of all your credit card debt to a low or even zero percent credit card rate. Transferring all of your outstanding balances and consolidating will give you the opportunity to make one monthly payment with all of that payment going toward principal rather than interest.

Sometimes you can also obtain a consolidated loan and pay off those high-interest credit card debts. Once you have increased your income and transferred your debt to consolidated rates and loans that are more affordable, there are one or two more things to do.

Cut Your Cost of Living

Take a good look at where you can cut costs. If that means making lunch every day and cutting out that expensive coffee, you will be surprised how much money you save at the end of the month. Make sure you have a budget set in place. Set aside some fun money and at the end of the month when it is gone, no more impulse buying or fun money until the next month.

Set New Habits

Getting into debt is simply a bad habit or returning pattern that you cannot escape. However, if you are intentional about it and aware of it, you can create new and healthy habits.

• Set a budget
• Journal your spending habits
• Have an accountability partner when you feel like splurging
• Discipline yourself to eat at home more often and make lunch and coffee in the morning

With these tips, you can surely break the debt cycle in no time.

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