Getting Out of Debt: Different Ways

You can trash the reminder letters all you want, but it doesn’t trash your debt. Debt stays with you like white on rice, so it’s best to figure out the best way to get out of it without having to resort to drastic means.

1. Pay beyond the minimum: The first thing you need to try and do is stop paying the bare minimum each month. Normally, this is about 3 percent of the entire balance and is exactly what banks expect of you. Less than half of your payment makes an actual dent in the balance and goes toward the high interest you owe, so all you’re doing is burning money in exchange for an absence of threatening phone calls; you’re not getting anywhere otherwise. Pay as much as possible per month; try for at least double the minimum. Examine your spending habits and slim down on the luxuries for now.

2. Get another job: If you honestly can’t slim down anywhere and are already skating on your teeth paying back your debt, you’ll want to consider getting a job. Use this money strictly for paying it back, paying off the ones with higher interest rates first and going down to the (Read More….)