DebtSmart.com Thursday, July 7, 2022

7 Tips to Dumping Debt

by Jim Garnett
Jim Garnett Jim Garnett is the CEO of AskMrG Consulting, a company focused on helping Americans gain control of their finances and get on a path to being debt free. Jim is also the "Mr. G" behind the AskMrG Financial Library and brings over 30 years experience as a counselor, speaker, and author to each endeavor. You can reach Jim at: AskMrG Consulting, 2216 SW 35th Street Ankeny, IA 50023; 515-577-1799, askmrg@yahoo.com

1. Choose to Live Differently. A wise proverb states: “Live like you must live now, so you can live like you want to live later.”

2. Determine to Spend Less Than You Make. Appreciation for what we have often results in contentment with what we have.

3. Do Not Use A Debt Settlement Company. Most of these companies are a fast track to being sued and ending up in bankruptcy court.

4. Fund An Emergency Savings Account. Quickly acquire a minimum of at least $1000 in emergency savings and add to it each paycheck. Shoot for three months income amount, then six months. We either plan for emergencies or go into debt when they come.

5. Take Advantage of Automatic Payments. Pay as many things (including savings) as you can with electronic, automatic payments. What we do not see or touch, we do not spend.

6. Commit Future Money To Debt Reduction. Make the decision right now that at least 75% of any raises, bonuses, tax refunds, or any other additional income will go to paying off debt.

7. Pull A Credit Report. To make sure there are no “old” or “unknown” debts out there, pull your credit report. www.annualcreditreport.com is the place to get your report free.