Ditch Debt!

The bills keep coming, the phone calls start. People want money and you don’t have it! Dealing with debt can cause a great deal of stress and feel extremely overwhelming.

In fact, new research shows that women suffer greater anxiety, and have more difficulty coping with the stress that money trouble brings.

You can’t run and hide from it; you need to be honest with yourself and motivated to face it and dig out of debt. Mary Ann Demchak, an accredited financial counselor, and financial education and community outreach advocate with Clearview Federal Credit Union offers this advice:

• Your gross may look wonderful on paper, but if your net is less than your bills, there will be problems! The amount of major credit card debt is testament to that. Keep a spending diary to track expenses for one month to get a clear picture of what you really need “to live.”
• Know what your net is and what you owe-this is a must! It’s amazing how many people have no idea how much debt they are actually in. Do you keep a log of your revolving and installment debt? Keep a chart of what you owe, who you owe it to, the APR, and the due dates for each.
• Learn to distinguish between your wants and your needs. Before you make a purchase, think it through. Does it fit into your plan for debt reduction?
• Identify your personal goals. Where do you want to be financially in the next five years? How will you get there?
• Know what your options are. What resources are out there to help? Explore all options: your credit union, outside agencies that specialize in debt management and/or counseling, using your own methods.
• Commit to making positive changes in the way you live. If you stay on the same course you can’t expect to get a different result!
• Save for the future as part of your basic financial routine. Saving is an important part of any healthy debt reduction plan.
• Create a plan and stick to it! Empower yourself to make a difference in your financial future.

j.