Pay off Debt – Its a good start
Whether you accept or believe what the media is saying, it can be difficult to make money these days; concurrently, your expenses always seem to increase. As a result, you end up in debt and experience more difficulty to pay off debt because your income is not enough to pay for the bills and expenses you have.
One of the root causes of debt is the unwillingness to change your lifestyle even when your financial situation has changed. Losing your job – whether temporarily or permanently – or experiencing some losses in your business due to recession is a difficult blow to anyone. When the income becomes less than the expenses that you have, it results in a negative cash flow. If you continue with the lifestyle you have despite the new situation, you will find that your household debt has increased in a few months and when you come to pay off debt the problem is bigger than you ever thought.
Household Debt – Its the first step.
On the other hand, you may not have lost your job but still it is still difficult to pay off debt without causing problems or hardship anyway. Perhaps, it is time to make some lifestyle checks to see if what we’re doing is causing the financial problem you are in right now. Do you really need all those hobbies and habits you have had in the past but right now are creating pressure? Sometimes the most difficult things to see that are creating the problems are the ones that start at home. 
Your household debt is the easiest thing within your control to look at when finding a solution.
Start looking at ways to Pay off Debt
As they say, desperate times call for desperate measures. However, you don’t have to resort to desperate measures to pay off debts. You can still control your financial affairs, so you can maintain your present resources and pay off debts in due time. You can begin this by involving the members of your family in the process of paying off your debts by informing them of your current financial status and decide on a plan of action by analyzing what is important. One of the things you can do is to prevent household debts on some of the household expenses. We have talked previously about personal debt here if you would like some ideas and help before you talk to the family.
Smart ideas on How to Pay Off Debt on Household Expenses
- Plan your meal. You can start saving on food by planning your meals. Look at what makes you exceed your budget when doing your groceries (check the docket), you will find out that the items which are unnecessary, like snacks. By planning your meal, you will be able to avoid buying unnecessary items next time you shop. Then you can use the savings you have to pay off debts, instead.
- Buy in a warehouse. When doing your shopping, go to a warehouse and buy the daily necessities in bulk. Buying in bulk entitles you to a discount and saves you gas because you don’t have to go do your groceries more frequently. Simply break down your bulk purchase into meal sized amounts before freezing. Another idea is to choose the store brand in favor of the name brands as they are cheaper. In most cases you wont be able to tell the difference in quality of these small changes but yet another opportunity to save on household debt.
- Eat at home. There are many benefits in eating at home rather than in restaurants. You get to save on money and have a healthier diet. A home cooked meal can be much cheaper and healthier because you know what’s inside your food. Moreover, the chances of eating more is lessened because you choose the size of the meals and the effort involved in cooking your meal. Next time you decide not to eat at your favorite restaurant congratulate yourself on saving money to pay off debts and avoiding a lot of calories by not eating junk food. It will strengthen your motivation to eat right and save.
- Unplug Stuff. Look at how many electronic appliances you have at home. Do you unplug them when not in use or you let it remain plugged? Unplugging items which draw standby power when not in use can help you pay off debts. Energy experts have what they call phantom power, the energy consumed by electronic appliances and gadgets even if they are turned off but still plugged to the power source. Unplugging your electronic devices when not in use can help you cut your expenses by five to ten percent.
Take the bus. 
- Think about how saving on gas can help lessen your household debts. Your bus fare is definitely much cheaper than the cost of your gas. If you really want to use your car, carpool with your family or friends if you are going on the same direction. Trains are another public transport alternative to cutting your household debt.
Think creative to pay off debt
There are many ways you can be creative with thinking about how to pay off debt by saving on household expenses. Evaluate other family activities you have that are not necessary, look at work expenses, think of things to do on weekends that are cheaper for the family – all of which can help to lessen household debt.
You may enjoy one of our previous articles on using cash vs credit cards
***Photo thanks to James.Thompson & Dalbera***
{ 2 comments… read them below or add one }
I would have to add ditch the contracts when it comes to television or phone and go with less. I took on a pay-as-you-go service (with any phone) and pay only $2.50 per month. I am actually going to post about it next week. If anyone is serious about debt repayment I think contracts of any sort are the first to go. At least in my case.
There are such things which are called a bad debt and a good debt. The latter is better than the first one. Bad debts should as much as possible be eliminated. When you can afford a risk or when it is manageable, it is safe to acquire good debts.
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