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So the good news is you got a job with some security and a decent salary. The bad news is you’ve racked up quite a bit of debt along the way.

There are numerous reasons why this may have happened, but at this point, let’s stay positive and focus on the solutions.

The fact of the matter is you are in a better position than many folks, some of whom have lost jobs or had their wages cut way back. You have a job and are resolved to find a way out of the debt hole you are in. Good for you.

Still the question remains: Is your salary high enough to pay off your debt?

1. Try a little exercise

No, not jumping jacks or pushups. The little exercise I’m talking about involves asking yourself a different kind of question.

Instead of asking if your salary is high enough, ask “Where can I cut back in order to pay off my debt?”

You’ll find by asking the question this way, you have more control over the outcome. Whatever your salary is today, you can always find ways to cut back on your expenses and use the savings to cut your debt.

Here are some suggestions for where you can cut back in order to pay off your debt.

  • Cut out that premium coffee every morning and lunch out every day.

It’s amazing how much we can save just by eliminating these two things. Brew your own coffee at home and pack a lunch. This can end up saving you $75 a week or more. That’s $300 a month toward your debt.

  • Review your mobile phone plan, cable bill and other services for places to cut.

Ditching premium cable and cutting back on your smartphone data plan could net you another $100 or more.

“If you’re serious about

paying off debt, do it with effort.”

  • Call your insurance company and ask for a review of your coverage.

Chances are if you have a good record with no recent claims, they can do something to lower your monthly premium. This goes for auto and home or renter’s insurance.

  • Keep track of your daily expenses by writing them down for a full week.

At the end of the week, you should see numerous areas where you can cut your discretionary spending.

2. Found money

If you’re serious and follow these suggestions – along with whatever else you come up with – you should find yourself with at least a few hundred dollars “extra” per month to use toward your debts. You’ve given yourself a raise!

You can then pay off your credit card debt starting with the smallest amounts first, and soon you’ll have your debt under control without ever needing an increase in your salary.

These tips and tricks work, but they need commitment on your part. If you’re serious about paying off your debt, you can do it with a little effort.

Photo source: telegraph.co.uk

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About The Author

Mike Randall is most knowledgeable in the areas of credit scores and credit cards, having written on those topics and others for the past eight years. He graduated from California State University with a degree in English literature, and he has an extensive background in personal finance studies. When he's not keeping BadCredit.org readers informed of changes in the subprime market, Mike’s hobbies include sailing and gourmet cooking.

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