Today I think things have reversed and there is less income than debt with negative excess in some cases. People are hurting and need relief and often find themselves looking in unlikely places to find it. People who in the past never surfed the Internet find themselves online looking for ways to create income. How can we get the income, debt and excess aligned in the right order?
Income:
I think we all realize that if we can create more income than debt than we will have excess. The problem is daily people find themselves unemployed, which of course reduces their income. It's important to take action immediately. It may mean looking for work in a field other than the one you are comfortable with. You could look at adding a part-time job or even a work at home online job to add additional income.
Debt:
I realize that if you have just lost your job it is very hard to talk about reducing debt, but this is what has to happen. It may mean a new job, a part-time job or both but creating more monthly income than money spent on debt each month is a major part of the solution. It's imperative that you are on a budget so you both understand where you money is going and identify areas where you can cut back immediately. You can do little things like pay more to the higher rate credit cards monthly than the lower interest rate cards. When possible it's to your benefit to pay more than the minimum amount due. This will help your credit rating.
Excess:
Once you have created some excess cash coming in on a monthly basis you should do several things. One is create an emergency fund or savings account and the other is pay of debt. The more you do these two things the faster you will get out of debt and the mess you and many good people just like you find yourself in.
Taking action will not only make you feel better, but you will feel very good as you see the debt decreasing and your wealth increasing. Please feel free to read both this article or one of my many others by visiting my link in the resource box below. I always enjoy getting emails pertaining to my articles or my site. Your feedback is important to me.
