How to Get Out of Debt - Tips on a Second Income
If you have found that your debt and your income are deadlocked you may feel that there is no way to make any headway. In this situation, many individuals turn to a second income to help make the extra money that they need in order to get control of their finances and begin making a real difference in the amount of debt that they owe. Even more frustrating than dealing with a mountain of debt is working even harder and earning more money without seeing any changes in the amount that you owe.
Unfortunately, many individuals who take steps to earn extra money by getting a second job find themselves in just this type of situation. This is not because they are not working hard, it is because they are not using the income from their second job to its greatest advantage. If you are able to meet your regular monthly needs, such as utilities, mortgage, car payment, groceries and the rest on your primary income then your second income should be dedicated solely to paying off your debts. It is tempting to use the extra money that a person is earning as fun money, but this will not do any good when it comes to getting out of debt.
It is easy to understand why person who gets a second job would feel that they deserve a little extra luxury since they are working so hard. While a person definitely needs a few personal bonuses in order to make their extra effort worthwhile, whether it is a trip to the theater or a meal in a nice restaurant, it is crucial for you not to lose focus on the reason that you got a second job in the first place.
In order to ensure that the extra money you are earning is being put to the best use possible, you should immediately stop using any credit cards that you have. If it is absolutely necessary, you can keep one card or emergencies but destroy the rest so that you can concentrate on paying them off rather than adding more debt to what you already owe. By keeping your new debt to a minimum and using the extra money earned solely to pay off old bills, you will begin to see real progress in no time. Watching that mountain of debt get whittled away is a reward in and of itself.