Debt Free
Debt is a problem that plagues millions of americans. Debt can be brought on by any number of things, from simply being stupid and reckless when you were younger, to unforseen circumstances that you have no control over. So whether it was from buying that fancy car and tv or getting into an accident and having unexpected medical bills, debt is something that can happen to anyone.
So it is no surprise that so many people are looking into how to get debt free. Since debt is nothing new and since so many people deal with it, there are a lot of methods for climbing out of that hole. You can look into working with specialized companies to help consolidate your debt, negotiate with creditors to lower your payment amount, or even file for bankruptcy.
However not all those options are necessarily viable and for those who want to be more hands on in their journey out of debt, there are three simple tips to help you get started and keep your head above the water.
1. Be organized. The first step you want to take in becoming debt free is to simply get all your debts together. Make a list of every debt you have, how much it is, and what the interest rate is. Once you get this all organized you can look into finally paying them off. It is advised that you focus on paying off one debt at a time while making the minimum payments on the others.
There are two methods you can use for deciding what debts to pay off first. You can either pay off the debts with the highest interest rates first, or you can pay off the smallest debts first to help get you motivated. Both methods work and it is up to you to decide which would be best for you.
2. Start small. You would be surprised just how much money we waste on tiny little day to day things. That cup of coffee from the store, lunch from that nice deli down the street. Even a simple candy bar at the check out. While individually these things do not matter, together they can add up to hundreds of dollars a month.
Start cutting back on this unnecessary expenses, start saving money wherever possible by using coupons at the store, not buying name brand items, and negotiating on big purchases. Then you can take all the money you’ve saved and put it towards paying off those debts.
3. Keep it rolling. Once you get that first debt paid off you can take that minimum payment and apply it to the next debt on the list. This added money will allow you to pay off that debt and once that one is paid off you just repeat the process. Each time you pay off a debt, all that money is now going to your next one. If you keep at it and do not fall into more debt and do not miss a minimum payment, you can be on your way to being debt free in no time.
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