Russell Jalabert"s Tips On Getting Out Of Debt
Retirement planning expert Russell Jalbert lists ways people might use to reduce their indebtedness or get out of debt altogether.
Experts say that if more than 15% of your after tax income, not including your mortgage, goes toward debt reduction, you are overspending. Using your savings, you should allocate a set amount each month for debt repayment. You should avoid using your credit cards and quit spending period until the debt goes away.
Here are some additional ideas for reducing expenses:
* Analyze all spending. Use checks so that money spent can be recorded. Be sure to record any bills paid via the Internet in your check register. Save all your receipts and confirmation numbers.
* Analyze all energy costs. Most utility companies will do an energy audit for about $20. Internet web sites for most utility companies will offer an option to view and print usage and charges for recent months, and some up to the past 12 months, at no cost. Read the consumer information that is usually included with the monthly statement for more energy savings/cost-cutting ideas.
* Shop for prices on your home and auto insurance. Ask the agent for ways to reduce costs, such as raising the deductible amounts, installing deadbolts, etc.
* Destroy or put away all credit cards.
* Avoid impulse buying.
* Clip coupons for items you normally use.
* Grocery shop at warehouse stores and shop less often.
* Compare prices from sales flyers. Most stores will honor the lower advertised price for the same item from a different store if you bring in the flyer. If you can find and show a lower advertised price from another store, some stores offer cash back.
* Shop for clearance or after season sales items.
* Fill your gasoline tank mid-week.
* Read and mail in rebate offers.
* Save stamps by paying your bills online. There's usually no charge to pay online, but remember to record confirmation numbers, amount, and date paid or scheduled to be paid.
* Compare banks for checking/savings account requirements and fees.
* Compare Internet server companies. Some servers are no charge. If you have a dial-up connection, make sure they offer local area dial-up numbers.
* Have a yard sale or donate items to charity. Itemize and save receipts for a great tax benefit. Sometimes in preparing these items for sale, one can actually see an aftereffect of overspending (too much stuff) that might help deter further overspending.
Experts say that if more than 15% of your after tax income, not including your mortgage, goes toward debt reduction, you are overspending. Using your savings, you should allocate a set amount each month for debt repayment. You should avoid using your credit cards and quit spending period until the debt goes away.
Here are some additional ideas for reducing expenses:
* Analyze all spending. Use checks so that money spent can be recorded. Be sure to record any bills paid via the Internet in your check register. Save all your receipts and confirmation numbers.
* Analyze all energy costs. Most utility companies will do an energy audit for about $20. Internet web sites for most utility companies will offer an option to view and print usage and charges for recent months, and some up to the past 12 months, at no cost. Read the consumer information that is usually included with the monthly statement for more energy savings/cost-cutting ideas.
* Shop for prices on your home and auto insurance. Ask the agent for ways to reduce costs, such as raising the deductible amounts, installing deadbolts, etc.
* Destroy or put away all credit cards.
* Avoid impulse buying.
* Clip coupons for items you normally use.
* Grocery shop at warehouse stores and shop less often.
* Compare prices from sales flyers. Most stores will honor the lower advertised price for the same item from a different store if you bring in the flyer. If you can find and show a lower advertised price from another store, some stores offer cash back.
* Shop for clearance or after season sales items.
* Fill your gasoline tank mid-week.
* Read and mail in rebate offers.
* Save stamps by paying your bills online. There's usually no charge to pay online, but remember to record confirmation numbers, amount, and date paid or scheduled to be paid.
* Compare banks for checking/savings account requirements and fees.
* Compare Internet server companies. Some servers are no charge. If you have a dial-up connection, make sure they offer local area dial-up numbers.
* Have a yard sale or donate items to charity. Itemize and save receipts for a great tax benefit. Sometimes in preparing these items for sale, one can actually see an aftereffect of overspending (too much stuff) that might help deter further overspending.
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