10 Steps to Freedom from Debt

Here are ten steps to getting out of debt from Money Central:

1. Figure out how much you owe.

2. Keep the two cards with the lowest rates. Cut up the others. Write to the card issuers and close the accounts.

3. If you don't have a card with an interest rate of less than 14%, get one.

4. Resolve that you will use your cards only for essentials over the next six months. For other purchases, use cash or a debit card.

5. Add up your minimum monthly payments.

6. Calculate how much you can pay over the minimum.

7. Apply all of your additional repayments to the card with the highest rate.

8. Consolidate your debt.

9. Pay the minimum on your lowest rate cards until you've paid off the balance on the more expensive cards.

10. Consider using your savings to get out of debt.

This is one of the "tried and true" methods for slowly but surely whittling away at your debt until it's gone. If you really want to get out of debt, I suggest you start implementing this strategy today. It works!!!

Comments

[James]

The bigger question is: "Who or what entity actually owes the debt?" Sometimes people don't get the answer to their questions because they're not asking the right questions as Wil Smith said in I-Robot... Debt-currency is the cause of all debt problems!