Being in debt is no fun, and it can make you feel like you’re sinking even if you’re not.
When you owe money to credit card companies, you likely feel trapped and overwhelmed. You may feel like you will never get out of your debt, but if you break it down, dollar by dollar, you can come up with a plan to pay it off, which will make you feel a lot better.
LifeDaily has composed 10 Simple Steps To Help You Pay Off Your Debt:
Step #1: Find out how much you owe
This is the most obvious step, but right now go online or call your bank and find out exactly how much you owe.
Step #2: Rank debts in order of size
A repayment strategy by Dave Ramsey called the “snowball method”, teaches you to pay off your smallest debt first, then use the mental boost to tackle the next biggest, and so on.
Step #3: Or Rank debts in size of interest rate
Alternatively, you can pay off the debt of your highest interest rate credit card first. This will enable you to ultimately pay less over the life of your loans.
Step #4: Know how much you’re spending
If you don’t know how much money you have coming in and out, you’ll never be able to figure out how much cash you can devote to your debt.
Step #5: Live below your means
Spending more than you make is probably how you got into debt in the first place, but to get out of it, you must live below your means, so you have spare cash for your payments.
Step #6: Allot cash for minimum payments
Every week or two (however often you get paid), set cash aside for each of your minimum payments on your cards. If you can afford to pay more, than definitely do that.
Step #7: Automate your payments
You can automate your payments so that every month, on the 20th for example, the money you choose to pay for your credit card will come directly out of your account. This eliminates the possibility that you forget to pay it when it’s due.
Step#8: Reduce your regular expenses
If you can reduce the prices of monthly costs like your utilities, gas, and groceries than definitely do so. This will leave you some extra cash to pay your debt.
Step #9: Spend less on things you don’t need
New clothes, a night out, vacations or restaurants are nice, but paying off your debt might make you feel a lot better than those things could.
Step #10: Bring in extra cash
Sell some things online, take a part-time or freelance job, or do whatever you can to contribute towards your payments.
We hope these 10 Simple Steps To Help You Pay Off Your Debt helped. If you have any you’d like to share, please do so in the comments below.
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10 Simple Steps To Help You Pay Off Your Debts is a post from: LifeDaily