Get Out Of Debt Fast!

2007-03-08 10:33:40

( Financial )



One of the most common ways people get into debt is by using their credit cards. Credit cards are convenient; they allow us to purchase items even if we're not carrying cash. In fact, they allow us to purchase items even if we don't have money at all! That is the problem right there. Credit card holders are prone to spend money that they do not even have yet. The result is debt; often heavy debt.

A few steps are all that is really required to get out of debt. This does not mean, however, that these steps are easy. It was a lack of self-discipline that led to your debt; it will take self-discipline to get out of it. However, if you are willing to make a few sacrifices, it is by no means impossible. Here are a few things you will want to do to get it done.

First, cut up your credit cards. You heard me right; cut them all up! Except for a card or two to use in emergencies, you should not be carrying a motley collection of credit cards around. The more cards you have, the more you will be tempted to spend, and that is exactly what you want to avoid when you are trying to get out of debt. To make this less likely, cancel most of your credit lines, and commit to pay in cash for all purchases. Again, the one or two credit cards you have remaining should only be used for emergencies. Be disciplined here.

Second, consolidate your debts. You want to find the credit company that offers the lowest interest rates; then you should transfer as much of your remaining debt to that company. Keep in mind that you can usually renegotiate for lower interest rates with just about any credit company, especially if you threaten to take your business somewhere else. Find the best offer and go with it.

Lastly, pay off the debts with the highest rates first. As time goes by, these debts are the ones that will grow the fastest; therefore they are the ones that are hardest to repay. Analyze all your debts at the same time; then decide which ones you will prioritize for repayment.

So there you have it! The steps outlined here will help you get out of debt fast, should you actually take the time to implement them. Get started now!


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