Step one: Carefully budget your money, remember, there is always a way to spend less money. I know you’ve heard it a millon times, however, it is true. For example, by forfeiting that morning coffee or the lunch that you purchase everday for five or ten dollars a day, it adds up to more than you expect. You do the math, by the end of one-month you would have saved yourself a pretty penny to put towards your debt.
Step 2: Pay off your credit cards with the lowest balances first (this could be accomplished with your beer money) not the ones with the highest interest rates. The reason for this is the credit cards with the lowest balances will be paid of quickly and once these smaller balances are out of the way you can then use the combined money that you were paying on those credit cards to put toward other credit cards with higher balances. If you use this method, not only will you be debt free faster, but it will give you a sense of accomplishment because you have paid off one of your credit cards, and, do wonders for your credit score.
Step 3: Try to make a extra one hundred dollars a month. Take this extra hundred dollars and use it (in addition to your snack money) to pay off the smaller debt we talked about in Step 2. Come on, I know you can find some legal way to make an extra hundred dollars a month if you put i mind to it. You found thousands of ways to spend this money in the past, let’s figure out one way to earn it. It may be easier to say to yourself “What can I do to earn 25 dollars a week”, same goal just may sound more realistic if you look at it from this perspective. Okay, if one-hundred is still too much, start with a smaller goal, and work your way up.
Step 4: Talk to all of your creditors to see if thay can work with you on your interest rates and payment. Depending on your creditor this could also tie into step one. It is much harder right now with the banks trying to get every penny they can but it’s worth a try, this could save you a few payments or get you a reasonable payoff.
With these basic steps you should be well on your way to being debt free. And if you will like any more info about debt please visit us at http://www.bdwassociates.com.