If you have a lot of debt haunting you, it can seem like your options for getting out from under this burden are very limited. While you might be contemplating bankruptcy, there are others options you can explore before you decide to take this route. So if you’re determined to get out of debt on your own and are willing to make some sacrifices to meet this goal, here are three ideas that might help you to get out of debt quickly and get back to a worry-free financial life.
Always Pay More Than The Minimum
Regardless of what type of debt you have, you’ve likely been given a minimum payment that you’re required to pay to your creditor each month. While keeping up with this minimum payment might assist you in keeping those creditors off your back, you’re not really going to make any headway on your debts by going this route. Because of this, Holly Johnson, a contributor to The Simple Dollar, shares that you should always try to pay more than the minimum payment on your debts. By doing this, you’ll be able to avoid paying so much in interest over the life of your debt, which could save you thousands of dollars in the long run.
Keep Yourself From Accumulating Any More Debt
To really start making progress on your debt, you need to stop it in its track. To do this, it’s crucial that you stop accumulating any more debt than you already have. According to Allison Martin, a contributor to Money Talks News, the best way to keep yourself from spending more money on your lines of credit is to completely freeze them up, literally or figuratively. You can do this by making it impossible for you to use your credit cards anymore, meaning you put your credit cards in the freezer of your home or that you take other measures so that you can’t add any more debt to what you already have.
Focus Most Of Your Efforts On One Debt At A Time
When you’re ready to start really paying down your debt, Debt.org recommends that you don’t try to pay down all of your debts at once at an accelerated rate. To have the best results for yourself, it’s going to be better if you choose to focus the majority of your money and financial efforts to paying down one debt at a time. Once you’re able to pay one thing off completely, usually the one with the highest interest rate, you can then add that money to what you’ve already been paying down on your next piece of debt.
If you’re ready to stop being in debt and get out from under this financial pressure once and for all, consider using the tips mentioned above to help you do this as quickly as you can.