Things You'll Need:
- Patience
- Self control
- Motivation
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Step 1
Cut up the credit cards and throw them away! If you ever want to get out of debt you MUST stop borrowing money. If you need to keep a card or 2 (for now) for emergencies put them on water and put them in the freezer so they won’t be readily accessible.
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Step 2
Create a detailed budget that you can live with but cut out all the “extras”. If your serious about getting out of debt your going to need to put cable, eating out, recreational activities etc on hold for a while. Create your budget of essentials and figure what you have left over. It’s this money that will get you out of debt.
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Step 3
Hold a yard sell, ebay sell, or take an extra job. Find some way to add a little extra to that budget.
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Step 4
Pick what bill to pay off first. There are so many options on this one that it could keep you on the fence about what to choose. I would say, JUST PICK ONE. If paying off the smallest to largest will keep you motivated please do that. If you can’t stand the thought of paying to much in interest, pay the highest interest bill first. It really doesn’t matter where you start….as long as you start somewhere!
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Step 5
Once you’ve paid off the first, get started on the second in line. Take the payment you were making on the first bill and add it to the payment on the one your paying now, plus any additional you can manage. Keep going in this manor until everything, including you house, is paid for.
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Step 6
Learn your lesson and don’t get in debt again. Take all that extra money and get an emergency fund going. Once you have that to fall back on, get rid of those credit cards once and for all!
Comments
twcl99 said
on 11/17/2009 To learn how to manage credit card business visit http://www.cardexpert.org