Free Debt Help - Get Out of Debt Yourself
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How to Get Out of Debt Yourself:
Here’s the best thing to do if you want to get out of debt using your own means.
Step 1 - Find ways to reduce your spending. Although an obvious statement, if you are serious about getting out of debt, and getting out of debt quickly, you can always reduce your spending. It may mean that you need to slightly change your lifestyle by reducing your spending on entertainment, dinners and food, travel, impulse buying and anywhere else your money goes. Make sure you know exactly where your money is being spent. To do this, create a budget that lists all of your sources of income and then add in all of the places that you spend your money. I bet the first time you do this you won’t be able to account for all of the money you really spend. Dig into this budget and find out where your money really goes. Do you spend it on clothes, cars, food, entertainment, laundry? You’ll find out that you’re spending a lot of money on things you had no idea were costing that much. Find out where your money is going and then reduce your spending.
Step 2 - Find ways to reduce your expenses. You’d be surprised how much of your money goes to expenses that you don’t really need or that can be dramatically reduced. Cut out any expense you can by
Step 3 - If possible, find ways to increase your income. This step is a little harder and is not possible for everyone. However, the more compelled you are to do something about your debt, the easier it is to find ways to increase your income. Some great examples of ways to make more money include getting a second job, finding a higher paying job, working overtime, asking for a raise (if appropriate), finding a weekend job and even finding ways to make money from home (Avon, Amway, find something you have expertise in and then sell your services from home).
Step 4 - Make sure that you pay your debts down in the most efficient manner. The difference between paying your debt off randomly and paying your debt off efficiently can result in thousands of dollars and years of savings. Here are the simple rules you need to follow:
Transfer your balances to your lowest interest rate credit card.
Pay off your highest interest rate debt first.
When allocating payments across credit cards or various debt, pay minimum payments on the lower interest rate debt and pay all the rest on the highest interest rate debt.
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