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« Eight Unusual Ways to Create Cash | Main | Get Out of Debt, Part 2 »

May 04, 2005


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Hands down I can say from personal experience that the best way to get out of debt is to increase income w/o increasing debt level.

Opportunities to increase income are greater now than ever before due to technology.

Here is the way to do it.
1. Stop using credit cards.
2. Make a list of all of your credit cards, the interest rate, the total balance owed, and what your minimum monthly payments should be. Put that list in order by the interest rates...highest first.
3. The credit card with the highest rate is costing you the most. Pay the minimum balances on all of the other cards. Any additional money that you might have each month should go to the card with the highest interest rate. Pay more than the minimum. By not eating out or making additional cuts in your monthly expenses (beer, movies, etc...) you will be able to pay more toward your highest card. Pay that off. Once that is paid off, take all of the money that you were putting toward it and put it woward the card with the 2nd highest rate. Pay it off and then on to the next.
The trick is to avoid the temptation of using the cards you paid off and putting some additional balances.

Good article and solid advice. I wish all Americans would view your blog and take your advice. The quickest way for wealth building that I have found is to find someone successful and get them to mentor you on how to repeat what they have accomplished. There is no better time to start. All the best.

Excellent articles. My husband and i ran into serious credit card issues after the birth of our son. these people were great helps to us. If anyone is in serious shape that they cant get out the way that is described, these people really helped us avoid a serious bankruptcy with never any obligation. Although temptation to use credit cards are still there and its very hard to do, but must be avoided.

Credit card debt is the worse. So hard to get out from under once you get in trouble. Its easier to lose weight or stop smoking.

Credit card debt is hard to get out of. I suggest paying off the highest interest rate card first. Always pay more than your monthly suggested payment. Also try to cut your expenses when possible, and if you have to, get another job.

Getting out of debt is really not easy to do especially if one is already burdened by it. The method of listing all your expenses can be helpful because you can track down where your money goes. And to add, in order to be completely out of debt, one must be very careful not to use the credit cards until they are all paid off. Discipline is really needed to become successful in the debt-free endeavor.

It depends what kind of debts you have. As much as possible I opt for paycheck advances and plain old cash loans from friends and relatives. Not a big fan of credit cards because it's pretty obvious you'll have to pay a lot of miscellaneous fees even if you don't use it much. My dad opted for debt consolidation back then when we had some debt problems. It helped in such a way that it bought him a bit of peace of mind.

this is faisal I really appreciate it.

he easiest way to reduce credit card debt is through a home equity loan, but there are debt reduction options out there for those who dont own a home. With a little wisdom and planning, you can get to work on securing your financial freedom.

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