The 1% Rule That Will Help You Get Out of Debt

Would you like to get out of debt by making the smallest of changes? Most people would. I would like to tell you how the One Percent Rule can help you get out of debt and turn your life around.

Make a 1% change in your life.

That one percent can make a huge difference in your life if you'll just stay consistent with it over time.

You can compare that one percent change to changing direction only slightly as you run down a beach. If the ocean is on your left and you turn just a little to the left, then not much is likely to change if you only walk ten feet. But that little change might mean a lot and you could literally get in over your head if you walk a whole mile in that direction.

Fortunately, the one percent change in your life won't get you in over your head. Stick with it long enough and you will finally be able to come up for air!

What does this mean in practical terms? It can mean a lot of things. Stop buying name brand when you can buy store brand, for example--you'll be surprised and impressed with how much money this will save. If you can buy groceries and necessities in bulk, then so much the better.

Other "1%" items include: skipping that daily soda or coffee, even if it only costs a dollar; stop eating out for a while, even on special occasions (you can save SO much money doing this); cut out an expense from your life, even if it's a small one (special features on your cell phone, for example.

The positive 1% change that will help you get out of debt.

But you don't have to just cut things out of your life if you want to get out of debt. The One Percent Rule applies to positive things you can do, as well.

One change you can make is to apply 1% of your income to paying off your creditors. If you're already spending that (or more), try and increase the amount you pay by one percent every month or so. Even a small amount such as this means a lot when you're dealing with high interest rates.

Speaking of interest rates, see if you can get any of your creditors to pull your interest rate down by a single percent. Your success will vary depending on your creditor--credit card companies will often cut off more than that, while many banks will go no further than one quarter of one percent (if that).

In any case, no one will raise your interest rate just for asking. If the customer support rep you talk to is resistant, ask to speak to a manager. This can work especially well with credit card companies (who are already making a boatload off of you, anyways).

Explain to them that they're a lot more likely to get more money out of you if you don't have to file bankruptcy and you might help yourself get out of debt that much more quickly.