How to Pay Off Debt Quickly
Pay off debt is not easy at first. It is easy to get overwhelmed when you figure the amount that you owe verses the amount of income you have. However, by following these tried and true ways to eleminate debt, you will be debt free before you know it.
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Instructions
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Organize. In the first section of your 3 subject notebook, write the information about each of your debts. Use a different page for each. Write the company's name, address and phone number. Write the interest rate and the payment as well as the date that each payment is due. Also, at the top corner of the page, write down the year in which the company expects for you to pay the debt off.
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Keep track. Write down each time you make each payment, and how much you paid. Under the line of your payment, write the amount remaining on your debt. Keep a calendar with your notebook and mark the due dates of all of your bills.
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Take action. Find the smallest debt owed. If it is under $100, find a way to pay it off at once. Take the amount you have been paying on the smallest debt and apply that payment IN ADDITION to your current payment of the next to smallest debt. Before you know it, your debt elimination will be well under way.
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Make a split decision. After you have eliminated your smaller debts and are left with only your larger debts (perhaps a car loan and a mortgage), make the decision to divide the extra money into the larger debts.
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Celebrate. After each debt is paid off, no matter how large or small, celebrate the occasion. Either go out to dinner or have a party, even if you are the only one in attendance. Paying off debt is a huge accomplishment and should be celebrated.
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Tips & Warnings
To jump start your debt elimination, have a yard sale with all proceeds going toward paying off the smallest debt owed.
