Getting help with your debt is crucial and while there are no easy and fast solutions you can adapt to get out of it, there are ways to attack the problem and learn how to manage it.
First of all, you need to understand the steps below. Second, acknowledge that you are in economic trouble and need to get out of it. Third and last, follow the steps and stick to them completely and never cheat!
1. You can’t begin to solve your debt problem without first taking a close and clear look at what you owe. Make a list of your credit cards that includes the interest rate (and the annual interest rate), payment due date, and the balance due.
2. Make your list complete and remember to include any reward points or redemption offers that may be part of that credit account.
3. Rewrite your list by priority placing the highest interest rate and high balance accounts at the top of the list.
4. Look at any special offers like those reward points or redemption offers. Is there anything that can be applied toward a payment? Probably not, but there may be items you can get free so take advantage of any special offers as long as it doesn’t cost you more money.
5. Make a second list of various ways to reduce your debt. This would include increasing your payments each month, using a debt counselor or use of a debt reduction program. Be cautious if choosing a program or loan to consolidate debt. Paying off debt by creating new debt is often a bad idea.
6. Focus on eliminating the worst your debt problem by looking for ways to pay off the highest interest rate cards first.
7. Take a close look at your daily spending habits and make cuts in expenses where you can. You might be surprised at how much you spend on small items when you total it up.
8. Can you generate more income? Is overtime work available or can you work a second job part-time? Even if you only work a few extra hours a week the money you earn from that could be applied directly to your debts and reduce them faster.
9. Reducing debt won’t happen quickly so you need to keep spending in mind every day and apply every extra cent to reducing that debt. Keep a record of the payments applied against the debt to motivate you to find even more ways to put and end to your money problems for good.
Debt problems happen too many of us. If you refuse to acknowledge the problem it will never get better. Blaming yourself or others or planning to do “something” about won’t help. Avoiding the subject will only add to your problems.
Take a clear look at what you owe, put away your credit cards and use the advice above to take action. Focus on paying off those credit cards and challenge yourself to follow the advice above every day.
Remember, in order to eliminate your debt, you need to change your spending habits and never return to them again! If you do that, you will conquer that mountain of debt faster than you imagine.