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Setting Up Your Debt Relief Plan

You’ve admitted that you have serious debt problems, and you’ve drawn up a plan to rid yourself of your debt problems, which mainly involves making a budget. In addition to that, you’ve cut down on all those unnecessary expenses and you’ve started allocating an amount every month to cut down on those debts. Of course, all the hard work you put will come to nothing if you don’t stick to your debt relief plan.

In many cases, it tends to be very hard for people to be on track to eliminate their debt. A lot of people often find themselves in debt due to a sudden change in their financial position, and have difficulty adjusting to their new budget, whereas, others aren’t exactly good at suppressing their spending cravings, and find it very hard to stick to their plans for handling money.

Given below are some tips which will help you to stick to your debt relief plan:

1. Eliminate those credit cards
If credit cards are tempting you to buy all those unnecessary stuff, then put all your credit cards in a safe place. If the knowledge of where the credit cards are located gets you tempted to use them, have someone you trust hide them away.

2. Keep track of all your expenses
Believe it or not, your spending on all those unnecessary stuff will reduce when you write down the expenses that you incur every day. This is because when you look at the list of expenses, you realize that you spend too much on unnecessary items, and so you make a conscious effort to reduce such expenses.

3. Close off all paid – back accounts
As soon as you have paid off the whole debt on a particular account, close it. When you know that there’s a credit card account with a $0 balance in it, you’ll be tempted to start spending on that account. Close all your credit card accounts except for one which has a low interest rate, which should be used only for emergency spending.

4. Throw all those credit card and loan offers right into the bin
As soon as you see any letters which have a semblance of any ‘nice’ credit card or loan offers, shred them. You already have enough trouble with debts, it’d be a very bad idea to take up some more!

5. Don’t overreact when you go off track
Don’t start berating yourself if you slip up. Just restart from where you left off and continue paying off your debts. Too often, people make mistakes and decide that it’s too hard to keep up, and go back to their spending habits. One small mistake is not the end of the world, just pick yourself up and continue repaying your debts.

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