5 Easy steps to get rid of your debt

FinanceMortgage & Debt

  • Author Melissa Roberts
  • Published September 19, 2010
  • Word count 766

Debt has become a common problem but there is no simple way to get out of it. We should ask ourselves that if we like to live with the burden of debt or we will step up and fight with it to get out of the labyrinth of debt. It is difficult to get out of debt but it is more difficult to stay out of it for a long time. So when you are under the burden of debt you have to know about the easy steps to get out of it and along with it you should make a strategy to control your budget so that you won’t again fall into debt by incurring new debt. Here I would like to discuss about five easy steps that one should know to get out of the maze of debt.

The following five steps can help the debtor to save more and pay off less money. Moreover it relieves him from all the troubles caused by debt and drives him to spend a soothing financial life.

  • The debtor could make a brief list of his debts: The debtor can try to collect a copy of his free credit report in order to know his highest or lowest interest rates which he can get from an attachment of his past statement or account information by browsing. He can also search for the outstanding balance and the minimum monthly pay amounts. But the main focus here lies on the official tally of his debt.

  • The debtor has to note the regular expenditures: The debtor has to find out the amount of the regular expenditures. So, in that case he has to collect all the receipts of the expenses and in order to save some more he can manage to reduce or arrange it in a planned way. The debtor has to understand that spending more than ones financial capability causes frequent debt problems. So the debtor may obviously keep a note about each and every penny, no matter how tiny or huge it remains.

  • The debtor can prevent the increase of his debts by personal efforts: The debtor can cut those credit cards to half which are maxed out. The best way to prevent the debts to get increased is holding a single credit card and spending the minimum amount for the mast haves of the debtor’s daily occurrences. In this connection he can also cut up any convenience card such as the department store cards, gas cards etc.

  • The debtor can shift his focus to the highest interest rates to roll the funds over the next debt: The debtor, after paying the high interest rate, can put a glimpse on the next high interest rate. By this the debtor not only affords to pay the minimum monthly payment but also he can apply for the minimum monthly payments that he has already paid including the extra funds. This will make the pay process faster and by this he can accelerate the process saving more conveniently for a long time. The debtor can divide the balance by seven or eight months or he can divide it weekly. This will make the pay process easier and the debtor will feel light and comfortable to pay the lump sum amount.

  • The creditor can make repetition until he gets freedom from the burden of debt: The debtor can make a continuation of the pay process until or unless he gets free from the trap of debt. He should think and look forward in a positive sense of this action. As faster he can end up his debts, paying them one by one as soon as he can break the riddles of debt and by this he can save more money. After completing this process he can breathe the fresh air and enjoy a debt free life.

Finally if you find it too difficult to pay off your debt then you can hire a debt settlement professional or a debt arbitrator to work on your behalf to negotiate the debt with your creditor. Debt settlement is considered to be the fastest way to get escape from of debt, but if you go for this program your credit score might get hampered but not to the same degree as in case of bankruptcy, but the good thing is once you pay off your debt through debt settlement process then your credit score will get repaired automatically.

Those are the few tips that can help the debtor to manage the debt problem and money saving process in an easy and efficient way.

Author Bio: This article is written by Melissa Roberts, she is a financial writer for http://www.debtlaw.us/. She has come across severe debt problem in her life after losing her first job but she has managed somehow to get out of it. So now she is trying to save all those people who are suffering from debt burden with the 5 easy steps to get out of debt.

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