How to Get Rid of My Debt
Being enslaved to debt can cause a lot of worry or anxiety. Sadly, some people acquire tens of thousands of dollars in credit card debt, which often results in high minimum payments and a lowered credit score. Getting rid of your debt can provide you with a measure of peace. And once you've reduced your balances, you'll notice an increase in your credit score.
Other People Are Reading
Instructions
-
-
1
Review your expenses and allocate a certain amount for debt each month. Cutting out certain expenses and putting this money towards debt is the fastest way to become debt-free. Track your spending for a month to see where you can cut back. Figure out your disposable income (money left over after monthly expenses) and apply this money to debt payments.
-
2
Shop alone. Going into retail stores with friends can tempt you to spend money you don't have. Limit credit card use to eliminate your debt and gain control of your balances.
-
-
3
Keep credit cards out of your possession. If you're unable to control yourself, give your cards to someone you trust. Have him store the cards in a safe, undisclosed located.
-
4
Consistently pay more than the minimum payment on your debts. Making lump sum payments each month quickly eliminates debt. If this isn't feasible, start small and increase your minimum payments gradually. For example, pay $75 a month instead of $25.
-
5
Take out a home equity loan. Get rid of high interest credit card debt with a low-rate home equity loan. Discuss options with a mortgage broker.
-
6
Sell personal belongings to create cash. Go through your closets, attic and other storage areas in search of items to sell (unused furniture, jewelry, electronics, clothes). Have a yard sale or place items for sale on online websites such as Craigslist or eBay. Use the proceeds to pay down debts.
-
7
Look for work. Working a second job in the evenings or on the weekends can create enough cash to pay off debts. An extra $100 a week can pay off a $3,000 credit card debt in approximately seven to eight months.
-
1
References
- Photo Credit Debt concept - cutting a credit card image by Sophia Winters from Fotolia.com
