Five Hot Tips To Get Out Of Debt Forever
Debt is largely a choice. Through a series of intelligent decisions, you can start reducing your debt until you work your way back to zero. Here's how to get out of debt forever:
1. Lower your interest rates - Lowering your interest rates on your debt will significantly reduce the amount of time and effort necessary to pay off your debt. A phone call to your lenders to ask for a lower interest rate usually works, especially if you are a long-term customer.
2. Make use of promotional balance transfers - If you cannot negotiate a lower APR, make use of balance transfer credit cards to begin moving debt to a lower-interest lending offer. This is one of the best ways to lower your APR, as you can often lower your rates to zero for 12-18 months.
3. Pay extra - Making payments in excess of the minimum payment is the only way to start reducing your debt and one of the few ways to make real headway on debt reduction. Many people use the debt snowball method whereby they make minimum payments on all cards except for the card with the smallest balance. The smallest balance is then paid off first, and the proceeds are then rolled over to the second largest balance, etc.
4. Make a plan - Write down all your debts and the interest rate for each. Have a plan for how much you can dedicate to debt repayment and stick to it. Once you pay off the very first of your debts, you'll see instant progress, and your debt repayment addiction will soon begin. It is very fun to watch balances shrink to zero.
5. Grab rewards - Online discount offers are readily available in your credit cards' online accounts. Use these offers to get anywhere from 1-30% of what you buy online back in the form of cash. Saved money can then be allocated to faster debt repayment!
