The number one enemy of debt are interest rates. The higher the rate the higher the debt. The quickest way to lower your debt is by eliminating interest rates. The first step is to pay credit cards that have a high annual interest . Start with the credit card that has the highest interest rate and pay a little over the amount you pay every month until the debt is gone. If you have more than one credit card that has the same interest rate pay off the one with the lowest balance first. The more high annual interest rate cards you can eliminate the lower your debt will go. Once all high annual interest rate credit cards are paid off cut them up and throw them away. Write a letter to the credit card company requesting to have your account closed.
The next step is to make a list and read it every day. It’s by far easier to eliminate your debt when you can see it. Make a list and include all installment accounts excluding utilities then start paying them off. Include all information on the list such as the name and address of the creditor, what type of account, interest rate, the minimum monthly payment and the current balance. After the list is finished place it in an area where you will see it every day. This will help you to focus on eliminating these debts.
The next step is to cut up all your credit cards. Once all of your credit cards are cut up you can start developing a plan to pay them off. With the credit cards cut up you remove any temptation to use them thus creating more debt while trying to eliminate the current debt.
The next step is to reduce your spending habits. This is easier said than done. Start out with the simple things such as reducing heating costs by turning your furnace down just a few degrees. Replace all the light bulbs in your home with energy efficient ones. If you do your laundry at home consider one of your washing times with a trip to the local laundromat. Save on gas by always driving the speed limit. When running errands take snacks along to avoid stopping for fast food. Reduce the costs on your cell phone plan by getting rid of your current plan and purchasing a prepaid plan. You will be amazed at the money you can save every month by eliminating certain items on your cell phone bill. Change your cable TV plan by eliminating movie channels and other fees. By eliminating a few movie channels that you don’t watch as much you can cut your cable bill in half. When grocery shopping pay closer attention to food prices and purchase store brands instead of the leading name brands. By doing this you can trim quite a bit off your food bill every month.
There are other tips and tricks you can develop to reduce and eventually eliminate debt. You can also search online to find other tips for eliminating debt as well.