12 Days of Personal Finance

Getting Out of Deep Debt Waters

Texas CPAs Give Tips to Get Out of Debt-A-Swimming

Do you find yourself swimming in deep waters, flooded with payments past due, mortgage worries and tax concerns?  You won’t free yourself from money woes overnight, but Texas CPAs say that with time, the ugly duckling that was once your financial state can blossom into a debt-free, beautiful swan. 

The first step in the right direction is defining your goals.  Whether you’d like to be completely clear and free of debt, or just working towards clearing one issue at a time, knowing where you want to go is the first step in getting there.   

Texas Society of Certified Public Accountants (TSCPA) Chairman, Kym Anderson, says spending less than you earn is the key to being able to save and invest money.

“Continually look for ways to cut your expenses and/or increase your income. Trying to live beneath your means should be a priority,” said Anderson.

According to the April 2009, Nilson Report, the average outstanding credit card debt for households that have a credit card was $10,679 at the end of 2008. One year earlier, that average was $10,637.

Additionally, the United States debt stands at nearly $2.5 trillion dollars - and based on the latest Census statistics, that works out to be nearly $8,100 in debt for every man, woman and child in the U.S.

Texas CPAs say that if you’re carrying high credit card balances, you should consider consolidating your debt on one low interest credit card and making the highest monthly payment you can manage.

For several months, only make purchases that you can pay with cash.  Start swimming out of debt by simply setting a plan and sticking to it.


Day Six