How to Get Out of Debt ASAP

Debt is a major concern of millions of people

Consumer debt is out control. Loans and credit cards have cost individual consumers thousands of dollars during their lifetime in interest rates alone. Debt is something a lot of people worry about--it doesn't' matter if you have a little or a lot of it. The result is the same, worry, stress, and obligation to pay bills even in tough economic times when you are struggling just to pay your basic needs. While getting out of debt is never as easy as getting into it, there are a few things you can do to get out of debt as soon as possible.

Things You'll Need

• Credit card statements Copy of credit report

Instructions

1. 

   Spread your credit cards out in front of you. List each one along with its balance due and all interest rates. As you do this give some thought to how many hours you need to work to pay each one off. Looking at money owed in the terms of hourly blood and sweat needed to pay it is a good deterrent to further purchasing of wants instead of a need. Many debt problems begin because of impulsive wants purchased by credit instead of something that is actually needed. Once you have listed your cards, then re-list them with the ones that are owed the least amount of interest at the top. Every month, pay the minimum payment on each card plus an extra additional payment on the card with the highest rate. You should base the additional amount on what you have budgeted and can afford. Even a small payment applied to the highest interest card each month over the minimum pay off credit card dept quicker. This is because once that card is paid off, then the high interest is not being charged .Then move on to the next highest interest card and repeat the process.

2. 

   Check all your credit reports. This is very important because credit mistakes are fairly common. There may be items mistakenly added to your credit report that you don't actually owe. Identity theft is a real threat. Trying to pay off all debt as soon as possible can hit a road block if you have debt being reported that isn't even yours or has already been paid. Even if you are not aware of it, it will be on your record and considered your personal debt, so checking your reports will ensure your progress in paying down debt is not sabotaged. When you check your reports, be sure to contact all three major agencies as they can vary in what they contain. The three major agencies are Experian, Equafax and TransUnion. By law, each one has to provide one free report per year.

3. 

   Curb your spending and spend wisely when you do buy something. Follow a frugal way of life. Repair things when possible. When you can't repair, then shop around for the best deals. Remember that smaller things can add up in your effort to pay off debt. A few things you can do to cut back spending are cook from scratch and use coupons. It will vary depending on your lifestyle and needs, but cut back where it is practical for you to do so. Cash in hand from cutting back means more money for paying off debt.

4. 

   Make extra money. Have a yard sale or sell something you make. Get a part time job. Devote the extra pay entirely to your repayment goals. Also, keep all your change in a bank or jar. Every couple of months, apply all you have saved to one of your debts. Even small amounts add up to paying off those debts as soon as possible.

Tips & Warnings

• Money is an object and a tool for you to use. Try not to see it in an emotional way.

• When talking to those you owe debt to, request all agreements in writing

Resources

• Budgeting and Personal Finance Resources
• Contact Information for Obtaining Your Credit Report