Are you personally feeling the economic squeeze? Are you up to your ears in debt? Are you living from pay check to pay check with no end in sight? Living on a fixed income, maybe social security checks or unemployment checks?

Maybe the economy has had a negative impact on your employer, so they have eliminated raises or bonuses or even made cuts to your salary.

Even though your income may be in effect “frozen” your expenses are not, they keep increasing.   Your rent, cost of groceries, your home and auto insurance premiums always seem to be increasing.  

If you could better manage your spending and debt you could offset all of the increases.  Here are some debt management suggestions on where you can cut back on your spending to help keep your debt down.

Your Guide To Cutting Back on Your Debt

Shop Wisely.

  • Only go to the grocery store with a list.
  • Don’t buy any groceries that are not on your list.
  • Only buy something if it’s on sale.
  • If blue berries are on sale this week,  you eat blue berries this week.   If chicken is on sale, chicken is for dinner this week.
  • Don’t buy impulsively.   Make sure you need it vs just want it.
  • Buy in bulk.
  • Avoid using your credit card; if you can’t afford it don’t buy it.
  • Buy term insurance instead of a cash value policy.

Cut Your Expenses.

  • Guide To Debt ManagementDevelop a budget and stick to it.
  • If it’s not in the budget, it’s not purchased.
  • Eat at home more, go out to dinner less.
  • Take your lunch to work.
  • Rent a movie instead of going to the movie theaters.
  • Shop your insurance policies.
  • Increase your auto and home insurance deductibles.
  • Cut insurance coverages that may no longer be necessary due to the age of the auto or home.
  • If you drive a car older than 10 years old, you may be able to drop collision and comprehensive coverages and just carry liability coverage.
  • Ask your insurance agent for  a complete review of your insurance coverages.

Debt negotiation.

  • Debt management begins with you.
  • Contact your creditors.
  • Work out a modified payment schedule; most lenders will work with you on a payment schedule.
  • If you just stop making payments, your creditors could reposes your car or foreclose on your house.
  • Credit scores are very valuable; work with your creditors to help you improve your credit scores.
  • If you need credit repair help, find some credit repair services to work with.
  • Credit repair help is exactly what these credit repair service companies are for…they help with debt management and credit problems.

There is always help available; you just need to seek it out.

Asking your boss for a raise is not the right answer.  The right answer is to call your insurance agent, call your creditors, get some debt management help, get some credit repair help.

Effective debt management should be done slowly.   To cut down on your debt you don’t have to go cold turkey, ease into it.  Make a few slight changes, little by little.

Remember it’s not what you make but what you keep.  Work on reducing your expenses to offset financial struggles.