4 Immediate and Simple Steps to Personal Debt Reduction

By Maria Rainier, on June 28, 2010

Saving money is not always an easy task, and reducing debt can sometimes seem impossible. But fear not! Not only is it possible, with these tips, reducing debt can be a simple, painless process. These small steps will add up quickly to help you reach your debt reduction goals in no time.

Photo by HappyHaggis via Flickr

Trim the fat

This by far is the easiest way to reduce debt. Debt is like waves in the ocean. They just keep coming. We tread water, clean the sand out of our bathing suit, get ahead a little and then we get knocked right back to shore, buried in sand all over again.

If you cut your monthly expenses your debt will not compound so much. The waves won’t hit you so hard, day after day, week after week and month after month. Getting out of debt only to go back into debt makes very little sense. Try trimming your overages. Kill the premium channels on your cable subscription, renegotiate your cell phone plan, have one less $4 coffee drink, burn less gas, eat at home, etc.

Did you know that savings are returns? If you save 15% a week in expenses, your return was 15% — numbers don’t lie!

Save no matter how little

“I can’t afford to save, I am broke.”

“There’s not enough. Save what?”

We have all been guilty of saying these things. Stop saying them and get real! Put a measly 20 dollar bill away each week and in one year you will have $1,040 painlessly. Put $40 away and you will have $2,080. If you do nothing else, do this. It is so easy and should be automatic.

Would you prefer to contribute $400 at one time, or $20? Which do you think is easier?

Pay debt off consistently

This has been pounded into our heads thousands of times. So why don’t we listen? I don’t know, but as my dad always said to me “maybe this time you will listen”. Stay the course and no matter how small the move in the right direction. If you follow step one and step two above, step three should be automatic.

Focus on a single goal, living debt free. Make it your mantra. Practice debt free principles. Read about living debt free, become a student of debt free living.

Stay positive and think debt free

Before you buy something, anything, ask yourself this one question; is this purchase moving me closer to my goal or further way?

If you stay positive and ask yourself this question without fail, you very well may be able to become debt free easier than you ever thought possible. Good luck and remember to enjoy the journey.

If you need more help there are literally hundreds, if not thousands of valuable and free resources to help you on your journey. Seek them out, live it, learn it, love it and become debt free.

Recommended articles:

• How To Prioritize Your Debt Repayment Plan
• Using TracFone Prepaid Cell Phones To Reduce Your Monthly Bill
• 7 Sites To Help You Save Money And Live Your Lifestyle
• Budget Once, Spend (or Save) Twice!
• Learn from Santa: How to Save Money and Give Great Gifts
• 5 Things That Are Killing Your Budget
• Fast Online Payday Loans No Credit Check: A Better Mousetrap!

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Maria Rainier is 28 with an English degree from NC State. She is a receptionist for a growing advertising agency during the day, but prides herself as a part time blogger. She often writes on the topic of online education but also loves to write guest posts on various topics. Look for her other posts in the blogosphere.

All posts by Maria Rainier

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