For many Americans as the saying goes “Another day older and deeper in debt”. This is because debt is like a snowball the more you roll it the more it grows. People who are in debt tend to use one credit card to pay another credit card or try to ignore the problem
altogether which only increase their debt.
The problem with debt is that it is easy to get into but hard to get out of, but there are some things you can do
to lessen your debit and get back on the road to debt recovery. Remember getting out of debt is no quick fix; it will take
time, patience and a lot of budgeting.
- Get rid of all but one of your credit cards. Only keep the card with
lowest interest. The rest of them you can shred, burn, cut up or do whatever
it takes just so they are not around anymore to tempt you.
- Next rank all of your debts from credit cards from the highest to the
lowest and begin by paying off the one with the highest balances, one at a time. The
reason for this is that the more you owe on a card the more interest you are paying.
Get rid of the big ones and the rest will soon follow.
- Budget, budget, budget till it hurts.
Take your extra money and resources and start to apply it to getting out of debt.
Sure it will not be fun for a while, but think about the rewards when you no longer have all those bills hanging over
- Live within your means. Stop
trying to live up to your neighbor’s standards and using your credit cards to fill in the gaps of your lifestyle. Live with the amount of money you have. In
the end you might not have as many things but you will have more financial freedom.
- Get a second job. I know
this is not a popular option but sometimes you got to take the bull by the horns and wrestle him to the ground. A second job will give you more money to pay off those credit cards faster.
- Be careful of getting a consolidation loan. Most people if they have equity in their home get a loan and pay off those high interest credit cards.
They use a consolidation loan to give themselves one manageable monthly payment rather than a bunch of less manageable credit
card payments. The problem with is that you are not really getting out of debt
just moving the debt from one place to another. Oh yeah don’t think since the cards are paid off that you can use those
cards again, that is what got you in this mess to begin with.
- Take back as much stuff as possible.
Now most stores have 90 day return policies so if you have bought anything recently and have the box or packaging take
it back and get the charge taken off of your card.
- Move your mortgage. If
you have a mortgage company that is charging you a high interest rate seek a less expensive alternative. The difference could
be thousands of dollars.
- Avoid debt consolidation services unless they are of the free variety. A consolidation service does not do anything that you yourself cannot do. So save the fees and get to work.
- I am not going to mention the b word because it only ruins your credit
for years to come. So if all else fails use it, but otherwise use the tips mentioned
here and others that can be found elsewhere to try and get out of debt without the b word.