Debt is an ugly word. That’s because it signifies that your possessions own you rather than the other way around. No, I’m not here to lecture you, just to help you find ways to get out of debt you may have. While you’re trying to conquer your debt head-on, you’re going to need a bit of a strategy. Here’s what we’ve found has worked for many people that had struggled with debt.
Stop Taking On More Debt
While all hope might seem lost, don’t make the mistake of giving up and making your situation worse by taking on more debt. You can’t get yourself out of a hole if you just keep digging deeper. If that means cutting up your credit cards or taking other drastic measures to prevent more debt, do it.
Make Payments On Time
It’s also important to keep paying your bills on time each month. This way you avoid any late fees and the possibility of your interest rate going up.
Pay More than the Minimum
While it’s great that you’re paying your bills on time each month, paying only the minimum amount will have you pay more in interest by the time you’re done. Pay as much each month as you possibly can. Find areas where you can cut back in your life if you have to in order to pay a little extra.
Tackle Higher Interests and Smaller Debts
When people layout all their debt, most of the time that larger mountain of debt is what they try and conquer first. That’s actually a bad move on their part. Start with your smaller debts and ones that have higher interest rates and put more money towards them. Continue paying the minimum payments on your monster debts as well.
Throw More Money at the Next Debt
Once you’ve paid off a small debt, you’ll be able to make more money and begin tackling your next debt hurdle. Once you’ve knocked several out of your path, you’ll see huge progress and then be able to focus on the larger debts.
Get an Emergency Fund Started
Don’t you love how emergencies can wipe away your savings or have you turning to your credit card? Decide to have an emergency fund already set aside to stay ahead of the problem. First,
go after saving $1000 for a cushion. Once you’ve reached that goal, work on saving enough to cover 3 to 6 months of your expenses. That way, if you are out of work for an extended amount of time, you’ll be able to survive.
Do you own anything of value that you’re willing to part ways with? Or maybe you are willing to sell everything that you have (minus your children of course) to get out from underneath your debt. You might be surprised how selling your assets could help things turn around.
These are a few simple steps that you can take that will help you get out of debt faster. What other ways have you discovered while trying to get out of debt quickly?