Get out of debt – Getting out of debt is not an easy task and requires a lot of work and a change in your lifestyle. It can take several years to pay off debts in many cases and is something you need to deal with on a day-to-day basis.
The first step you need to take to get out of debt is to calculate how much debt you actually have. Many people who have credit card debt aren’t even sure how much debt they are really in. You should get out all your bills and add them up and know the interest rates are for everything. Once you determine how much debt you’re in you can figure out how to pay it all off.
Now that you have determined the amount of your debt you need to find out where your money is going. If you can put just $10 a day towards paying off your debt instead of buying coffee or fast food you can put $3600 towards your debt a year. Figure out where you’re spending your money and if you are buying things that aren’t necessary and that you can live without, then put that money towards paying off your debt.
Call you credit card companies to get your interest rate lowered. The best way to do this is to simply tell them that you have been offered a lower interest rate by another credit card company, if you pay your bill on time regularly they will usually negotiate with you. However, if they say no to lowering your rates let them know that you will be closing your account and transferring your balance to a new account that has a lower rate. Since they don’t want to lose your business or your money it is very likely that they will lower the rate for you.
Never pay your bill late and get a late fee. Many times just paying your bill late one time, even just by one day, you can raise your interest rate. In most cases if you call up your credit company they can waive the late fee for you, you just need to ask. You should always have proof that you called so if you see a late fee on your next bill you won’t have to pay it. Just ask for the person’s name you are speaking with as well as their ID number so you know it in case you need to call.
The best way keep your debt down is to stop using your credit cards right away. Don’t carry your credit cards with you so you won’t be tempted to use them, either write checks, pay cash or use a debit card. Pay your bills on time to avoid the late fees. Don’t go to the ATM more than once a week. Never sign up for new credit cards no matter how enticing they might be to you.