Debt Elimination – 7 Methods to Use

September 23, 2011

Debt Elimination

If you are looking for a plan of attack when it comes to debt elimination, we have 7 of the best methods that you can use that can eliminate your debt fast if applied and get you out of debt for good! There are many methods that you can use to . You can either use one of these debt elimination methods, or multiple and have been used by millions to get out of debt no matter how they got there. Below are the 10 methods of debt elimination.

Debt Elimination

7 Methods of Debt Elimination

  • Save For Retirement – This may sound really wierd, but saving for retirement can really help you with debt elimination in more ways than one. If you save for retirement, the amount you saved is considered tax deductable, which at the end of the fiscal year, you will get a payment for what you saved, which you can use to pay off your debt, as well as use the saved money on your credit card debt as well if you choose.
  • Snowball Payments – Snowballing your payments is another way to eliminate your debt for those who have multiple credit cards. This method consists of paying all the minimum payments on your credit cards except for the one with the lowest balance, which you will pay more than the minimum. This will allow you to focus on chipping away your debt one card at a time instead of being worried about paying them all of at one time. Or if you choose you can switch it up and start with the highest total first and work your way down.
  • Making A Budget – Making a budget of all your expenses will allow you to really see where your money is going each month, and when you have this overview, you can take out things that you don’t really need, like eating out less, finding less expensive entertainment, etc. Don’t eliminate all the good stuff though, only moderate, taking out one thing one month, and bringing it back the next month so you don’t entirely eliminate your favorite thing.
  • Pay More Than The Minimum! – Notice that this one has an exclamation mark on it, because this is a must for debt elimination. Companies don’t set you minimum payment so low because they want you to be able to afford it each month, they do it so it both keeps you in debt longer as well as makes you pay more interest. Paying more than the minimum will bring both a shorter repayment period as well as save you hundreds or thousands in what you would have paid in interest.
  • Stop Paying With Credit Cards – If you can stop using your credit card and just use cash, this can be an excellent way to eliminate debt. When you stop paying with your credit card, whatever balance is left when you stopped will be what you have to pay off, instead of adding the total each month of credit card use.
  • Pay High Interest First – Start by paying your cards off with the highest interest first.
  • Consolidation – Debt Conslidation can be another way to eliminate debt as well as provide you peace of mind that comes with conslidation as it groups all of your credit card debts into one payment. These plans come with lower payments and usually lower interest, which you will want to first find a consolidation company that in fact does offer lower interest than what you are paying on your credit cards. You can also conslidate with one credit card as well and still be able to enjoy the benefits. What this will do for you is provide you with a lower monthly payments which you can increase and pay off faster as well as saving money on lower interest which can be used for debt elimination as well.

If you don’t feel confortable with doing this debt elimination methods by yourself, you can always hire a credit or debt counseler who can help you find the best debt elimination method for you.

Debt Elimination Conclusion

The best thing to do on top of all of these debt elimination methdos is to envision yourself debt free and how it would feel if you were debt free now. There are also great books that you can read on debt elimination, which you can find a certain method that works and stick with it, which is the ultimate key to paying off your debt. By doing this you will experience how it would feel to be out of debt which will motivate you to attain that feeling all the time, and will be your drive in your pursuit of debt elimination.

Category: Debt Elimination Methods

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