Free Debt Elimination Advice

Pay off your debts without spending a dime on professional services.

Acquiring a debt-free life does not require using a debt-consolidation agency or other professional help. You can get rid of your debt free. And once you have cleared your debt, you'll enjoy a higher credit rating and better rates on loans and credit cards.

Higher Payments

Minimum payments may reduce your principle on credit card, but it's not enough to put a significant dent in your balance. Plan to make higher monthly payments to reduce your debt and ultimately become debt-free. Pay off your $1,000 in as little as 10 months with $100 payments each month.

Savings Account

You may hesitate to dip into your personal savings or emergency fund to pay off debts, but if carrying high balances and a high interest rate, using personal funds can quickly erase this burden, and you'll save money on interest payments. Devise a plan to replace the funds taken from your savings accounts.

Considerations

Having several hundred dollars of disposable income each month can quickly solve your debt problems. If your present income does not generate extra cash, check the classified ads for a part-time night or weekend job, or look for a better-paying full-time job. Earning an extra $125 a week adds $500 to your monthly income. This cash can pay off a $2,000 debt in four months.

References

• Key Bank: 10 Steps to Eliminate Debt