Tips For Fixing Your Credit; Part 1 Paying One Bill at a Time

For good or ill it is a fact that modern society runs on money. Lack of money is a root cause of any number of problems including strained or failed marriages and even poor physical and mental health. Whether you find yourself drowning in debt, on the edge staring into that void, or looking to avoid it altogether, there are several ways to help yourself.

The first of the tips I can offer for managing and eliminating debt is to pay one bill at a time. Obviously, this may seem an overwhelming task depending on everyone’s level of debt. It is up to the individual to decide which of their bills take priority, but in general, sound payment strategy involves first cutting your expenses as much as possible down to the bare minimum you need to live. The minimum amount of money you need to keep a roof over your head, the lights on, the heat and water running, and keep some food in your stomach is how much you spend that doesn’t go to your debt.

Generally, you want to tackle your smallest debt first, and make minimum payments on everything else. The primary reason for this is psychological. Part of the mental effect that debt has on us comes from the number of bills we receive. If we can reduce the amount of dread that comes from going to the mailbox, then paying off our debts becomes easier.

After trimming all your extraneous expenses and making your minimum payments on all your larger bills, take every spare dollar and put it towards the smallest bill. That extra money will add up over time and your smallest bill will be eliminated much quicker. Once your smallest bill is paid off, you will have extra money to put toward the next largest bill because now you can include the minimum payment that you would’ve made on the smallest one.

By tackling your bills one at a time in this manner, you not only reduce the psychological impact of the number of bills you receive, but you are also training yourself to live on a minimalist budget. It is important to remember that just because you pay off a few of your bills does not mean you can immediately add in unnecessary luxuries. Once your second bill is paid off, you can put all the money that you’ve managed to save per month toward the third bill including the minimum payment you were making on the second bill and so on.

Unfortunately, short of winning the lottery or reaping the benefit of having a wealthy relative or friend, there really is no quick fix to debt. Debt, however, can be managed and eventually eliminated through the application of willpower and sacrifice.
Anonymous Writer 

If you liked this post then please continue to Fixing Your Credit Part 2 Using 1 Credit Card.