Paying your debt off on your own is the best way of getting out of debt
, but this is not the ideal alternative for all people that have debt. This method takes discipline and organization. You also have to be able to pay more than the minimum payment or you may be paying your debt off for many years. You want to aim for being out of debt in less than five years and less than three years is ideal.
You are going to have to focus on cutting your expenses as much as possible and increasing your income. The more you are able to do this the sooner you will find yourself debt free. If you feel overwhelmed and are having trouble where to begin, you may want to look into credit counseling. This will allow you to consolidate your credit card debt without a loan. You will make one payment each month and the debt management company will disburse it to your lenders monthly.
Your interest rates are reduced significantly and your payments are snowballed as each account is paid off. You can be debt free in 3 to 7 years by making a 2% payment. If you follow this program as it is designed, it is an option that will have very little negative impact on your credit.
The best way to execute a self repayment plan is to find as much money as possible to use for debt repayment. Pay the minimum payment amount on all the accounts except the one with the lowest balance. Pay as much as you can on this account. Once the lowest account is paid off, select the next lowest account and repeat the process. You will go through this process until all of your accounts are paid off. There are many people that follow this process for getting out of debt and become debt free within a few years.