How to Pay Off Debt Fast
By Tricia Goss
Overview
When you owe creditors a substantial amount of money, your debts can overshadow every aspect of your life. Your health may suffer because you cannot sleep well, and you are eating poorly due to stress. Your relationships can be affected, too, since the anxiety may cause you to be short-tempered. You don't just want to get out of debt. You want to pay off your bills and rid yourself of the burdens quickly. Get started today, and soon you will see light at the end of the tunnel.
Step 1
List all of your debts. Decide which one you want to pay off first. You might choose the smallest dollar amount, or you may opt for the one with the highest interest rate. List them again in the order you want to pay them. Pay the minimum amount on each debt every month, sending any extra towards the one you are working towards paying in full.
Step 2
Live as if you are flat broke. If you had only enough money to scrape by on, what would you do differently? You probably would not have cable television or drive-through coffee every morning. Live as though you are just eking by, even if you have a little extra. Use the money left over after your most basic expenses towards paying off the first bill on your list.
Step 3
Bring in more income. Seek out a raise or promotion at your current job or consider finding a more lucrative one. Pick up a part time job on the weekends or in the evenings. Clean out your closets and cupboards, and sell your extra stuff on Craigslist or eBay. Use the money to pay towards your top debt.
Step 4
Transfer your credit card balances to a different card with a lower fixed rate. Cancel the cards with the higher rates immediately. Don't use your credit cards to pay for anything unless fire or bodily harm is involved.
Step 5
Refinance your mortgage or obtain a home equity loan and use the money to pay off your debts with the highest interest rates (or all of your debts, if you can). This will allow you to consolidate your debts into one manageable payment and likely at a lower interest rate. Cut up all of your credit cards, though, or you might find yourself in an even tougher spot down the road.
How to Pay Off Debt Fast by creditdebtconsolidating.com