How to Lift the Weight of a Heavy Debt Load

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Despite our best intentions, personal debt sometimes grows beyond comfortable levels. Unexpected expenses, holiday shopping, a family vacation, and other spending obligations can cause financial imbalance, calling for changes to the way you manage your household finances.

If runaway debt has you looking for a way out, restoring financial stability starts with your commitment to smarter spending and a balanced budget. With discipline and minor lifestyle changes, your debt will start shrinking, but don’t expect it to disappear overnight. It took time growing card balances and accumulating your debt load, so a slow and steady approach will turn things around.

Smarter spending slows debt expansion

Consumers face countless spending decisions every day, naturally leading to ill-advised purchases. In fact, poor judgement often plays a role in a personal credit crunch. Finding spending discipline may be overdue, but it is never too late to reverse poor financial fortunes.

As long as you spend less than you earn and make the most of your financial resources, debt will not pile up. On the contrary, smart spending can lift you out of debt and keep you in the black. Maximize your investment in these major spending categories:

In Your Household – Keeping your home heated, protected, and in general good repair is a costly undertaking. If you are looking for additional financial resources to apply toward outstanding debt balances, trimming household costs is a good first step. Money saved on household expenses is immediately reflected in your cash flow, furnishing flexible funds to be steered toward your most pressing obligations. Look for savings in these areas:

Insurance – Homeowner’s insurance premiums can sometimes be adjusted by raising deductibles and changing coverage limits.

Utilities – Properly managing your electric, gas, water and other utilities yields immediate results, particularly in cold-weather climates, where the cost of winter heating bills adds substantial sums to families’ monthly cost of living.

Home Maintenance – Keeping up with care and maintenance results in fewer costly repairs.

Residential Services – Are you hiring-out yard care and other services? Whenever possible, enlist help from family members and tackle all your household chores, without spending extra money on outside labor.

At the Market – Food costs vary, depending upon family size, but even those with only a few mouths to feed feel the monthly pinch of grocery spending. Trimming check-out totals at the market is a universal money-saver, limited only by your commitment to creative cost cutting. To save on food, start with these tips and add your own frugal steps to financial health:

Clip coupons – Between in-store savings opportunities and coupons clipped from weekly circulars, savvy shoppers carve substantial savings from their household food budgets. What’s more, grocery stores commonly extend double coupon days, giving you further incentive to take the time clipping deals.

Maximize rewards – Store savings programs, often tied to a card or phone number, are used to gather information about your spending habits. Savings are worthwhile for “members”, so it pays to participate.

Stick to the plan – Without a plan, spending quickly goes off-track. Starting with a well-conceived grocery list and food menu reduces waste and helps limit ill-advised impulse buys.

On the Road – Personal transportation is a privilege, which has grown into an indispensable modern convenience. But as much as we depend upon ready-access to a vehicle of our own, staying on the road comes with a hefty price tag.

Depending upon the severity and urgency of your pressing debt problems, major changes may be required to bring your transportation habits in-line with what you can afford. Is your car payment dragging down your monthly budget? Are you paying too much for auto insurance? Does a significant commute result in high monthly fuel bills? Answers to these and other questions prepare you to make the most of your transportation budget, lowering debt as you economize on the road. Possible solutions to spending problems include:

Ride sharing – Splitting the cost of daily commutes yields tremendous savings, over time, reducing your overall costs for job related travel.

Fuel efficiency – When gas prices are high and transportation budgets strained, comfort and convenience take a back seat to fuel economy.

Alternative transportation – Peddle power and public transportation are two legitimate money-saving options for frugal travelers. Walking locally is another way to get where you need to go, without adding to your overall transportation costs.

Each person assigns his or her budgeting priorities, so your best approach may not be the same as your neighbor’s. To erase debt and keep it away, change your spending habits in key areas. With minor lifestyle adjustments, you’ll not only see results right away, but also set the stage for long-term financial security.

Disclosure: This sponsored post contains affiliate links. Using these links helps me get out of debt quicker. Cheers!

Jen Smith

Jen Smith is a personal finance expert, founder of Modern Frugality and co-host of the Frugal Friends Podcast. Her work has been featured in the Wall Street Journal, Lifehacker, Money Magazine, U.S. News and World Report, Business Insider, and more. She’s passionate about helping people gain control of their spending.