Now that the damage is done and the consumer is neck-deep in debt, rather than be defeated and spend time in regret, it is better to deal with it by thinking of ways to pay it off. It is more positive and productive to think of ways to generate income. It can distract the consumer from the emotional side of debt and have fun at the same time while slowly chipping away at the problem.
There two major ways to have money to pay off debt, one is to decrease his/her expenses. Think of it as money that he/she already possesses but does not know how to keep. The second is to increase his/her income by working for it.
1. Decrease the Expenses
The following is quick list of how to save money:
• The consumer should do away with expensive food items
- He/she should really go to the grocery/market to buy food and cook it himself/herself instead of eating out. There are benefits to cooking from scratch rather than eating instant dinners. When the consumer goes to the grocery, he/she should first create a list and make sure to stay faithful to it. The consumer should also take note of the fact that when people are tired, hungry, or generally feeling inconvenienced, he/she should not go shopping because he/she would be susceptible to IMPULSE BUYING.
- He/she should take time and prepare food to bring to work
• Be mindful of the transportation costs and find ways to cut it
- The consumer should be conscious of the gas his/her car is using. He/she has to buy the right gas for his/her car to maximize its use and optimize gas mileage.
- The consumer should also have his/her car serviced regularly
- He/she should plan out his/her route for the day that he/she may run all the errands in a single trip
- Gas is expensive and the consumer should avoid unnecessary driving
- Although it can feel a bit like grade school, the consumer should find out If there are other consumers in his/her neighborhood that are taking the same route as he/she is or better yet, the same building as he/she is and then suggest carpool.
- The SUV was the hat ride for a while, until the global crisis, most consumers are now snorting at it. The consumer should get into the band wagon and trade in his/her SUV for a cheaper, more gas-friendly car, small cars.
• Reduce what you spend on clothes
- Many male and female consumers, even if they are not that well to do, or that it is not their profession to wear designer clothing, they still do. For an everage consumer it may be wise to forget about designer labels
- The consumer should exchange those designer clothes for trend-proof clothes. Those clothes that look almost generic and not flashy. Fashion changes as fast as a person blinks.
- For the coming winter, the consumer need not buy new sweaters, but instead layer the old ones to keep warm.
- The consumer should also watch out for sales racks, thrift stores, and consignments.
- To avoid buying new clothes, the consumer should learn how to launder his/her that they may last longer and not look worn out.
- Do not use clean only labels
• Get entertained for less or even better, for free
- If the consumer has movie subscriptions like Netflix or Blockbuster, he/she should have it cancelled.
- Get together with good friends and find out what movies they have and just exchange or swap with them instead of renting or buying.
- If the consumer has cable subscription, he/she should maximize it and not go out to watch movies on the big screen anymore.
- For consumers who love to read, it is time to get reacquainted with the libraries around town to avoid buying new books.
- For the music lovers, it is actually cheaper to purchase a song or two through Amazon or iTunes than buying the whole album. Many consumers liked just a song or two from an album anyway.
- Revive the old indoor team games and discover new ones with family and friends.
• Although the consumer is feeling very comfortable with his/her apartment, if the rent is a bit steep, it is time to hunt for a cheaper one.
• Look for a roommate or a housemate.
• The consumer should refinance his/her mortgage for a lower interest rate.
• Find out how to save or cut on cable/satellite cost
- One way is to cancel the premium channel subscriptions.
- Downgrade to basic.
- Cut the pay-per-view and movies on demand account.
- Frequently ask for promotional rates.
- The best way to really save is to cut it off altogether.
• Lower phone bills
- The consumer can use the cell phone as his/her primary phone.
- Use free long distance.
- Get the bundled phone with cable and internet service.
- Always ask for a promotional rate.
- Get the right minute plan for your cell phone
- Know the basic features; turn off the unnecessary ones, talk or text less.
- Be content with the pre-installed ringtones and do not be tempted to download new ones.
• Lower utility bills
- How to Lower Your Water Bill, About Frugal Living
- How To Lower Your Electric Bill, About Frugal Living
• Re-evaluate luxury services
- Can you wash your own car?
- Can you mow your own lawn?
- Paint your own nails vs. paying for a manicure
- Cut out visits to the spa
- Get your hair trimmed less often
• Before the consumer makes a purchase he/she should ask this question: Do I really need this?
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