Getting out of debt and staying out of debt is not easy. Chances are, you’re reading this article because you’ve already amassed a fair amount of debt and are thinking it will be impossible to ever get out from under it all. Learn how to stop incurring new debt and change your life forever.
Lower your interest rates. If you have good credit, contact the credit card companies and ask to have your rate lowered. That’s an excellent way to lower your interest expenses and will save you money every month.
Pay off your high interest credit cards first. If you can’t get your interest rate lowered on some high interest credit cards, then pay those off first. That way, you’ll reduce your interest expense over time by lowering the balance on those cards.
Consider a debt consolidation loan. If your credit is good, you can consolidate your credit card debt into one debt consolidation loan. You’ll find that it’s easier to manage one payment per month than many payments. Plus, it’s often the case that debt consolidation loans have a lower interest rate than credit cards.
Stop using credit cards. To ensure that you get out of debt, you’ll need to stop increasing your debt. Switch from a credit card to a debit card so that the money you spend goes out of your account immediately.
Pay more than the minimum when possible. Credit card payments are structured to keep the cash flowing to the credit card companies for as long as possible. Avoid falling into a trap that hurts your financial position and helps your creditors by paying off more than the minimum payments whenever you can.
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