Here’s the cold hard truth – you’re in the position of bad debt because you spend like crazy on your credit card, have no employable skills and have been spending the last few years doing nothing. You have nobody but yourself to blame for any of this, it was entirely your choice to do these things. First of all, go to a psychiatrist and they will help you get rid of your tensions, then complete whatever course you’re into. The following are the things you must and must not do.
- Get rid of your credit card. Cut it up and don’t use it again until you clearout your debts.
- You have to start somewhere, and with your lack of skills and experience, you’re not going to get a ‘good’ job without kicking shit beforehand. If one job doesn’t give you enough income to live off, go for a second. Work in the bar at night and in retail outlets during the day if you need to.
- Map out all your expenses into the following two categories: –
1) Non-negotiable: This consists of rent, bills, loans, car, credit card payments, groceries, petrol, and insurance.
2) Cut everything else as much as you can: Phone, the Internet, going out, fast food, alcohol, coffee. You get the idea. Cut out as much from this list as you possibly can. If this means getting rid of your phone contract and not going out, then that’s what you have to do. Don’t fall into the trap of “I deserve this or that” because you don’t.
- Groceries: Stop buying any sort of junk food or fast food. From now on, you buy vegetables and cheap cuts of meat, from a local market if possible. Pick up a $20 crock pot and learn how to slow cook a piece of chuck steak. Stews are incredibly cheap and easy to make, and a big batch will last you a long time.
- Pay off your loans. This should be one of your highest priorities. Don’t just pay the minimum on your credit card bill either, try to put in as much as you can on top of your minimum payments to cut them down as quickly as possible. Call up your bank and claim hardship if that’s an option in your city.
- Stop jumping around from job to job. It looks terrible on your resume, and no manager wants to employ someone who has a track history of delinquency.
- If you’re willing to make a few sacrifices, the military can take care of most of it.
- You should look into the trades. Sign up to CMC Markets. Pile-up some money, take a deep look into the website’s rules, if you’re pleased, then trading is a good option. And you never know when your fortunes will take a U-turn.
The above points are basics to get you on the right track and to manage your finances. But no one is there to stop you from spending money on what you like. There is only one mantra, work hard and set a goal towards earning a particular amount of money to manage your daily expenses.