Fixing Your Finances

By considering a debt consolidation loan, you've already vastly increased your chances to beat debt and improve your financial situation. But the victory will be meaningless if you allow yourself to fall into another financial abyss down the road. Becoming more credit conscious and making adjustments to your lifestyle and budget will not only prevent that from happening, but it will also help secure a more financially sound future for you and your family.

Kill Those Cards

To make sure you're protected when economic emergencies arise, most experts agree that a family should have two credit cards available. Giving some insight into the cause of the copious financial crises affecting people today, the latest statistics reveal that the average U.S. family maintains nine credit cards. So after paying off your revolving credit accounts with a debt consolidation loan, rid yourself of temptation by closing all but two of your credit card accounts. And don't just select those two randomly--look closely at the interest rate and terms of each account, eliminating the ones that will cost you more money in the long run. If the temptation of having two credit cards is still too much for you to handle, you might want to consider putting them in a safe place--not your wallet. The easiest way to beat debt is to remove the opportunity to get into it in the first place.

Stifle Your Impulses

Make it a rule to never immediately purchase something over a set amount--say, $50--that you weren't already planning on buying. If you decide to put off the purchase until the next time you shop, you might find you're just fine without it. Or, at the very least, you'll have time to determine whether you can get a better deal elsewhere.

Downsize

The saying, "A little bit goes a long way," has never rung truer than it does when trying to beat debt. By cutting even the smallest corners, you might be surprised at how much money is left in your pocket at the end of a given month. Some tried and true corner-cutting tips:

• Go generic. If you usually stick to name-brand products when grocery shopping, give the generic or store-brand versions a try. While you might find yourself returning to a few of the originals the next time you shop, you'll probably be surprised at how many of the less-expensive imitations are every bit as good or better than the originals. And instead of buying all of your cleaning products at the grocery store, a separate run to an inexpensive discount store will shave a significant amount off of your shopping bill.
• Cut clothing costs. Before heading out to a trendy fashion boutique in the mall to buy new clothes, try checking out a factory outlet or a discount store that specializes in irregulars. You might find that the trip to the mall is unnecessary.
• Break tradition. If you're in the habit of treating yourself to something on a regular basis, such as eating out once a week, cut it down to every other week. You'll spend half of what you'd normally spend, and you'll probably be surprised at how little an impact the reduced schedule has on your life.