There is a rather old saying that states when one is in a deep hole and cannot get out the best first step is to stop digging. Applying that thinking to this deep in debt situation the best first step is to stop buying on credit. The next step is to gather up all of the bills that one has related to the overall debt pile one has built up. Figure out which debt is the smallest in terms of amount owed. That is the first debt that needs to be off. Commit to paying only minimum on the other credit debts and put whatever else is committed to paying credit debt onto this first selection. Once that smallest debt is paid off, move on to the next smallest debt. Keep this paying off and moving to the next debt going. Following up on this one must now take a look at non-credit expenditures. Going out to eat, going out to the movies, going out to buy a book, a dress, shoes, pants, non-essential snacks. Start making lunch at home and bring it into work. Next step now is to figure out how much of one’s current income can be totally committed to paying off debt. Allocate the minimum monthly to all other credit debt and focus all remaining available monies to that one biggest, worst debt. Go through the house and identify anything that is not used, unneeded, or worth selling. Sell it all! But the money received against the debt. If there is a car that is on a loan and the car and loan is expensive consider downsizing and getting rid of that debt. If something breaks fix it rather than replace it. If something needs replacing buy a used item to replace it. Consider getting a second job, even if it is only part time. Commit that extra income to paying off the debt. Remember that in all financial decision while in this condition and commitment it is cash flow that is the focus. The more money one brings in the more money that can be applied against existing debt. Begin being a coupon guru. Use coupons as much as possible. Change the diet and food choices to what can be purchased with coupons or on sale at the market. Eat less expensively by reviewing what one buys as food and scale back as best one can. Allocate and commit any bonus and extra income to the debt. If one is actually going to rid one’s self of one’s debt as quickly as reasonably possible, one must become slightly fanatical about it otherwise it is likely that the debt will not be cleared. Another saying it that if a person is not moving up the hill in the chosen direction then one is sliding back down the hill is the unwanted direction. There is no standing still, catching one’s breath in this type of endeavor. One’s commitment must be continuous and constant and without distraction. It might mean not being as outgoing and available as one was, but one’s self and credit life is very important, also.
How To get out of debt fast
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