Freeing Up Funds for Debt Repayment on a Shoestring Budget?
Tough economic times have been going on for so long that it is hard to imagine anything else. Having to wonder every month if you can keep up with the minimum payments on your debts is incredibly stressful. There must be a way to break out of this cycle of debt, but where do you find the funds to pay down your debts when every penny of your paycheck goes to housing costs, groceries, and just barely making the minimum payments on your existing debts? Personal finance experts will tell you that the way to get out of debt is to increase your income and reduce your expenses, but if it were as easy to do those things as they make it sound, no one would be in debt. Even if you are living paycheck to paycheck, as most people are, it is still possible to make some changes to your budget that will enable you to pay more than the minimum toward one of your debts. If your debts are truly unaffordable and you need help negotiating with creditors, contact a Philadelphia debt collection abuse lawyer.
Reducing Your Expenses and Increasing Your Income Are Not as Easy as They Sound, but They Can Be Done
Extravagant spending is not what got you into debt; housing, car payments, and groceries have gotten a lot more expensive in the past few years. Therefore, personal finance advice like “move to a cheaper apartment” and “buy a cheaper car” borders on insulting. Likewise, the opportunity to borrow at low interest rates and to refinance existing loans is only possible if your credit score is above a certain level. Your goal now is to make more than the minimum payment on one of your debts; once you pay it off, you can concentrate on a different debt. Dave Ramsey calls this the debt snowball.
Where does a gig economy worker like you find the money for the debt snowball, though? Dave Ramsey also says you should never see the inside of a restaurant unless you are working there. This is another piece of aspirational advice; the fact that you can’t afford to eat in restaurants is old news. How can you trim your grocery bill when everything is so expensive?
Communal meals could help you save money. It’s easier to buy in bulk, but it isn’t practical when you have a small family. Instead, invite a few friends for a potluck, at the end of which each person keeps a variety of leftovers. Once you finish the potluck leftovers, you can make it through the rest of the pay period with groceries that are already in your pantry. You might even invent a new dish that is so good you will want to bring it to the next potluck.
Contact Louis S. Schwartz About Starting a Debt Snowball
A Philadelphia consumer law attorney can help you settle or discharge stubborn old debts so you can have some funds left over for a debt snowball. Contact Louis S. Schwartz at CONSUMERLAWPA.com to set up a free, confidential consultation.