Getting Out of the Debt Pit

Gas prices are at an all time high. Inflation is up and just about every other American working class family is feeling the pinch of the economic crisis. Inevitably not just a few have resorted to loans in order to tide them over, on top of maxed out credit cards and checking accounts with insufficient funds. Debts are accumulating. The financial pit that you have gotten yourself into seems to be getting deeper and deeper. Can there be a way out?

Eliminating debt is the first big step towards financial freedom and perhaps, in the not so far future, affluence. This is because unless debts are eliminated or at the very least, efficiently managed, you will have to fore go savings and investments. The following are tips on how to get you and your family in action towards gaining full control of your financial status, saving up and towards slowly but surely eliminating debt.

Firstly, watch your spending and be extra conscious of where those dollars are actually going once it leaves your wallet and your bank account. Make sure you spend only for what is necessary. Lay down a list of your monthly expenses-- only that of the most necessary-- so that you may be able to allocate funds for these needs. Eliminate expenses which you can do without.

Grab every opportunity to save

If your credit card allows you to save 5% or 10% on your bill by paying a few days early, then plan your budget in such a way that you will be able to meet those early bill payments. Keep your radar on alert for discounted purchases, sales and discount coupons. However, when that red tag grabs your eye, or when a discount coupon makes it to your mail, make sure that it is a needed purchase.

Carefully read your bills

Make sure you are able to understand each and every item you see on your bill and make sure you understand exactly what you are paying for. Check your utility bills and try to monitor if your consumption is on the average or if you're reaping the benefits of the energy saving strategies being implemented at home. Watch out for sudden surges in electricity consumption. On the other hand, when reading your credit card bill check every entry and report any anomaly or inconsistency in your bill immediately. You may never know when an unauthorized purchase may have been made.

Get the whole family involved

Every member of your family-- your spouse and your kids-- everyone in your household, should be made aware of the financial predicament that you are in. When it comes to the countless ways with which you can save those precious dollars, let every family member pitch in. This way, your kids will be able to consciously contribute in your debt eliminating efforts. The few dollars that they may save by reducing electricity consumption by turning the volumes of their radio a tad bit lower or by earning a little bit extra from mowing the neighbor's lawn or by baby sitting for a close friend should count when you're getting out of the debt cycle.

The author writes for many websites geared towards helping people get out of debt and bring debt relief into their lives.

Article Source: http://EzineArticles.com/?expert=Cary_Anderson