Recognizing that you should get rid of debt is a good decision, but actually taking steps to take it is even better. Knowing tips for getting rid of debt faster helps you expedite your return to fiscal health.
Apply the Snowball Method
One common way to get rid of debt faster is to apply the snowball method. First, you identify your smallest total debt and pay it off completely. Then, you move on to the next smallest debt and take care of it. Over time, you’ll gradually move up and tackle all of them.
Target the Highest Interest Rates First
The other common method is to just target whatever debt has the highest interest rate first. It’s the one that will grow the most over time, so it makes sense to start there when managing your overall debt. Think of it as pulling the fastest-growing weed in your garden. The others can wait.
Work With an Attorney
Working with an unsecured credit debt lawyer signals your creditors that you are serious about what you’re doing.
Even if you don’t use one to file for bankruptcy protection, just having to deal with your lawyer instead of you means your creditors might be more willing to give you more time and flexibility in paying down your obligations.
Consolidate Debts
Anytime you have a chance to consolidate debts, consider doing it. Consolidation can immediately mean simplifying the whole situation because you have less to track. Also, if you can move any balance to a place with a lower interest rate, your debt will accumulate more slowly than it previously did.
Find Some Breathing Room
See what you can do to reduce your expenses just a little while also boosting your income just as much. It might be as simple as cutting back eating out one meal a week while spending one evening a week driving for a ride-share service.
Even the mildest cutbacks in your spending with a little exploration of the gig economy can create some positive cash flow you can apply towards debt reduction.
No matter how much debt you rack up, always remember two things. First, it is possible to get rid of your debt. Second, you can pick up speed along the way if you do things right. The road may seem long, but all you need to do is start now, lay out a plan, and stick with it.
Image Credit: by twenty20.com
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