‘His brow is wet with honest sweat,
He earns whate'er he can,
And looks the whole world in the face,
For he owes not any man.’

               Henry Wadsworth Longfellow 

Many people feel that their finances are out of control. Now is the best time to do something about it. Listed below are seven simple steps you can take to reduce your debt. 

1.     Assess The Starting Position Now

‘Today, there are three kinds of people:  the have's, the have-not's, and the have-not-paid-for-what-they-have's.’ 

Earl Wilson

Honestly appraise your situation now, and work out what you have to pay and what you don’t. If too much of your net income is being used to pay off debts, you cannot ignore it. Anything over 25% of your net income is a warning sign.

2.     Spend Less Than You Earn

‘There are plenty of ways to get ahead.  The first is so basic I'm almost embarrassed to say it: spend less than you earn.’ 

Paul Clitheroe

If you want to lose weight, eat less and make a few lifestyle changes. If you want to be wealthier, spend less than you earn and make some lifestyle changes by doing more with your life that costs less money. You will be a lot richer for it, and not just in financial terms.

With the money you save, you can pay off debts more quickly.

3.     Learn Self Discipline

‘Discipline is the bridge between goals and accomplishment’.

Jim Rohn

Make some tough choices and make some sacrifices. Do not take on any further debt until you have cleared your existing loans.

4.     Change Who You Deal With And Swop Your Loans

Use the various comparison websites to work out if you could save money on your loans by changing to another provider. Check your utility suppliers to see if you could secure a better deal. Money saved is money earned.

‘The only man who sticks closer to you in adversity than a friend is a creditor.’ 

Author Unknown

5.     Don’t Pay For Things You Don’t Need

I have never lost or had a mobile phone stolen yet on every occasion I have bought one I have seen people taking out expensive insurance against this very event. Many people pay optional insurance for things that have never happened to them, and in all likelihood never will.

6.     Get The Best Mortgage Deal For You

Compare your mortgage with what else is on offer and if appropriate change it. The mortgage is usually the largest bill for most people.

7.     Have A Plan

Having made some changes and worked out what you can afford and what you can’t, make a commitment to get out of debt over a period of time you can manage.

It may seem like a long process but by taking control you will feel more positive about the future.

Jamie E Smith is the author of Making Money From Stocks And Shares

This content was provided by one of our users, Jamie