Decide to Stop Creating More Debt
Recognize that creating more debt will only make it harder. If you continue to create debt you’re only compounding the problem and adding to your debt crisis. If you have credit cards with an available balance put them somewhere they are not easily accessible, perhaps a safety deposit box. You may even have to resort to spreading them if you can’t resist the temptation to charge up more debt.
Pay More than the Minimal Payment Each Month
By paying the minimal payment due you are actually prolonging your debt and paying thousands of dollars in additional interest that could be used to pay-off the principle debt. By adding just a few more dollars to your payment each month you will be surprised at how much you will save and how much faster your debt will be paid-off.
Target One Debt at a Time
This is a strategy that will help you not only pay-off your debt but also help you achieve small goals. By reaching these small goals it will help you continue on your journey to paying off your debt. Start with the lowest balance and apply ever single bit of extra monthly income you have at this debt until it is paid off. Now you can take the extra PLUS the minimum you were paying and ably it to the next highest balance. Just continue this strategy until all your debts are paid off.
Look for Ways to Earn Extra Money to Pay Off Your Debt
Obviously the more you are able to apply toward your debt payments, the quicker you can get the debt paid off. Some ideas to raise extra money might be sitting right in your home. How about selling some of those items that you no longer need or use? What about starting a home based business? Review your current monthly expenses and see what can be eliminated. The list of things you can do to raise extra money is endless.
Negotiate a Lower Interest Rate with Creditors.
If you understand how interest works you will know that it is your enemy. Interest in fact is what keeps you in debt for so long and robs you of having extra money to do the things you desire or need. Talk with your creditors about lowering your interest rate. Many times they will offer you a lower rate with shorter term so your debt will be paid off quicker and you will save a ton in interest payments.