Not all debts are bad ones. But bad debts can hang heavy around your neck and create long-term financial strain.
Here’s the good news about bad debt: You can reduce it.
When you have a clear view of your outstanding accounts and amounts, you can use the following tips to get out of debt.
1. Re-examine spending habits
Your spending is divided between “need to have” and “nice to have.” “Need to have” means food, shelter, utilities, transportation and clothing. “Nice to have” is everything else.
While whittling down your debt, you can’t slack off on your “need-to-have” expenditures. But you can decrease your “nice-to-have” spending and use that extra toward a credit card or loan balance.
Cancel that…
