Getting out of debt
- in 6 steps -

In getting out of debt you should take into account these steps:

a. Write down all your debts.

b. Pay your minimum each month.

c. Send extra payments to a single account with the highest interest rate or to the account with the lowest balance.

d. Continue to make minimum and extra payments. Do this until the first account on your list is paid off.

e. Now, combine the minimum payment that you were sending to the first account with the extra payments and send the entire amount to the second account on your list.

f. Continue this process until you are debt free.

Besides the steps above it is wise to use also this additional ideas:

● The sky will not fall if you call your credit card company and ask for lower interest rates.

● Even if you only have five extra dollars, send them those five dollars. You know, every dollar matters.

● If possible, move the debt from a credit card with a high interest rate to a credit card with a low interest rate.

● Before you start sending extra payments, be sure that you have some money set aside. You will need it in case you have a mini-emergency. It may save you from using your credit card.

● If you create your own plan and stick to it, you can probably get out of debts by yourself and in most cases you do not need a debt consolidation company.