Get a Credit Report
For those that are currently struggling with debts, you may find that some debts you may not even owe. Since the government allows you to receive a free credit report each and every year, it’s best to request a credit report to make sure that everything on the credit report matches up to what you owe. If you see any discrepancies or errors, it’s best to call up the credit reporting agencies to get these issues fixed as soon as possible.
How Are You Going to Pay?
After you have glanced over your credit report and you have created a spreadsheet on all the creditors that you currently owe, it’s time to sit back and think about how you’re going to pay off each and every bill. What you’re going to want to do is take your highest interest rate account and put it at the top of the list, and from there you’ll want to list each and every account after that in interest rate order. While getting rid of the highest interest rate based account first is ideal, another strategy is by attacking the smaller debts first, making it seem as if more debt is disappearing.
Attack the Debts
Now it’s time to attack the debts. What you’re going to want to do is put as much money as you can toward account number one while paying the minimum amounts toward the rest of the accounts. Remember that you’ll never want to skip a payment because late fees will only make the debt pile up higher. It might help if you to write out a personal check for each bill at the beginning of the month and then mail them as the funds become available. That way you know that have accounted for everything. Continue to do so until the list starts to dwindle down. Remember that while larger lists may seem like they are going to never end, they will come to an end sooner or later if action is taken.
Earn More Income
Now that you’re ready to attack the debts and you have your list in hand, you’ll want to make sure that you’re bringing in enough money to fight off these debts. Since money doesn’t grow on trees, it may be ideal to pick up a second job or even consider investing into an education if your current job just isn’t cutting it. When it comes to the career world, the possibilities are endless.