Debt ConsolidationIf it seems like you've always been in debt and there's just no way to get out, take heart: there is a solution.
Can you imagine a life without debt? A life where you're not paying for yesterday's expenses, but instead can use everything you earn for today… and possibly put something away for tomorrow too?
Here's the good news: it can be done! The method is as simple as it is effective. However, it does require that you follow two steps consistently, and it will not happen overnight. Unfortunately, there is no magic bullet for wiping the slate clean. Stick to it, though, and you'll be thrilled with the results.
The first step is to stop taking on more debt. No more buying things you don't have the money for right now.
The second step is designating 20% of all income to pay down debt. No more, and no less. This means you'll be living off 80% of your income until everything is paid off.
It would be wonderful if you could put another five or ten percent away in savings so that, should an emergency arise, you'll have the funds to get you through without having to borrow again.
Make sure you differentiate between collateralized debt (home loans, auto loans, etc.) and uncollateralized debt, such as credit cards. Most collateralized debt is fine, (provided you're buying a car or home you can afford) and may be difficult to do without. The other type of debt has no place in your life.
Contact the Credit Union to discuss debt consolidation loan options. It might take a while to pay your debt off, but if you stick to the plan, you'll get it done… and you'll be debt-free!
Next: 5 Questions You Need to Ask About Debt Consolidation Loans