As most people, the current economic and financial crisis have hit home.
I have thoroughly enjoyed over the last few years the easy credit and the “Buy now pay later” philosophy.So here I am: a mortgage, a car loan, a personal loan, credit cards…. Somehow things don’t seem so fun anymore.
Bills are piling up on my desk, the value of my house is melting faster than the Artic snow and now they’re saying that my job is in jeopardy. Can someone tell me what the hell I’m suppose to do?
So here is how I see it, I have 2 options: 1 I decide to medicate myself and sleep through the whole crisis ,2 I take drastic actions and turn things around. I chose the latter. I will let you in on my master plan:
First thing first, I decided to put order to my chaos. I made an exhaustive list of all my outstanding debts and a list of my expenses. It really helped me get a clerarer picture, and funnily enough it looks less scary once I put it down on paper. Then, I decided to tackle each debt and tried to found ways to reduce it.
A-Mortgage: I would advice for renegociating your contract rather than refinance your home. Banks are not so keen on refinancing taking the current credit crunch and the amount of toxic assets they already have to deal with. I actually thought as well of moving out to a smaller place and rent out my current property in order to free some cash, which in turn I could put towards reducing my mortgage. You need to become inventive.ezinearticles.com/?Renegotiate-Your-Mortgage-Terms-Think-Its-Impossible,-Think-Again?&id=1367599 – 49k
B-Car loan: I for one loved my SUV but here is the truth I couldn’t really afford it. So here is what I did, I sold it ( www.autotrader.com ). And no, I haven’t bought another car, I use Public Transport. It saves me gas money, insurance money ,chocolate money at the Gas station and maintenance.
C-Personal Loan and Credit Cards: I actually put those 2 in the same box as you can try to get a consolidation loan. I was refused but Hey you never know your credit score might be better than mine. The Internet is full of companies that offer this type of service so google away…..What I did is I started to pay more than the minimum on my cards and loan in order to reduce my outstanding debt. I started with the card with the highest interest on.
On a more private note, now that my finances were more or less under control I decided to make a few changes in relation to my spending habits.
I changed supermarkets and I use coupons now. I had a garage sell and use the money to pay my bills. Basically I change my lifestyle: no more lattes, magazines, shopping trip to the Mall etc…… I’m living it frugal style.
I have become more creative when it comes to finding extra source of income or in maximizing my $$, you have to reingage and stop wallowing at the current economic debacle. If you think your job is in jeopardy, well make sure you have a plan B.
I agree it’s not much fun but it will get better, it did get better for me. I can see myself in a few years time debt free and most of all FREE!
You need to be realistic, “Happy Hour” has been cancelled. As President Obama said: “You need to pick yourself up, dust yourself off”.
So good luck to you all