cabbagehead
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1. Spend less than you earn.
This may sound obvious, but debt is created by spending more than you earn, and if you don't address this now, you aren't going to get out of debt. The more money you free up by reducing optional expenses like eating out, the more you'll be able to apply to your payments.
2. Keep some cash on hand.
You should consider creating an emergency fund before working on your debt so you have ready cash if something happens. Remember that you can't rely on your current credit line: if your accounts are closed, you'll need this money to pay for unexpected expenses.
3. Make minimum payments
The fastest way to rack up more debt is through late payment fees. Pay the minimum fee on everything each month before concentrating on paying off your debts.
4. Pay one debt off at a time.
Once you've got your minimum payments made, apply any money you have left over to a single debt until it's paid off. Not only will this make things easier to keep track of, it will give you a feeling of accomplishment. Some people may feel it's easier to stay motivated by paying off the smallest balances first, but by starting with the debt with the highest interest rate you'll end up paying less in the long run.
5. Negotiate
If you've kept up with your payments, debtors may be willing to lower your interest rate or wave fees to keep your business.
6. Don't spend money on financial help books.
They'll just tell you the same things you read here for free. :)
 Posted 5464 day ago
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