Get Out of Debt This Year - Building a Technique to Manage Mounting Financial Debt
Credit card debts when get out of hand can make you miserable
. This is a debt which gets heavier with time. It is easy to plan ways of getting rid of your debts but difficult to execute them. There are a few steps that you can follow in order to pay off your debts as quickly as possible.
1. List out all your debts: You will have to make a list of all your debts with their current balance and interest rates. With this data in hand you will be able to come up with a payment plan which will suit you the best. Some like to pay off the lowest balance first while others might just want to get rid of the one charging them the highest interest rate. You have to choose the one which you are most comfortable with.
2. Save Money: You have to cut down on all you extra expenses. You could save by taking your lunch to work. Cancel out any gym membership if you are not using it. There will be a lot of items under entertainment section or miscellaneous section of your expenditure list that you can do away with in order to save some money.
3. Try generating extra income: You can generate more money to pay off your debts faster. You could either take up a part time job or sell a few items which you so not use any more.
4. Reduce interest rates: Try negotiating with your creditors on interest rate. If you have a good payment record the creditors can reduce your interest rates by a considerable amount.
5. Settlement of debt: If you have no means of paying off all that you owe to your creditors then you can ask them for a settlement of debt.
The Writer is research analyst with Financial Solutions, which is an organization that helps overextended consumers with manageable debt settlement plan.
Get Out of Debt This Year - Building a Technique to Manage Mounting Financial Debt