The best way to get out of debt?

@p_i123 (486)
India
October 12, 2006 9:28am CST
The best way to get out of debt?
1 person likes this
7 responses
@ossie16d (11834)
• Australia
15 Oct 06
The best way is to reduce your expenses and after buying essential items, i.e. food then you pay off your bills. It might take a while, depending on how much you owe, but even paying small amounts regularly will gradually get rid of them. Cut out on all luxuries, i.e. take-away, new shoes or whatver, and put that money towards your bills. Do not use your credit card for anything till all bills have been paid and then if necessary have your credit limit dropped to an amount that you can afford to pay in full each month if you always max the card out. Talk to a financial counsellor to help you with a budget and good luck - it takes perseverence but it can be done.
@whitish (1409)
• India
15 Oct 06
only way is to reduce expenditure
@kishkumar (218)
• India
15 Oct 06
Try lowering your expenses and increasing your income. It is a slow and difficult process, but you will eventually get debt free. If you have a car loan make sure that you pay it first. If you do not have transportation it will be difficult/impossible to keep your job. Once you are out of debt, make sure you start saving up for a rainy day fund. This was one little misfortune will not send you back into debt.
@jetlady (338)
• Philippines
14 Oct 06
is not to get into one. but if you can't help it, make sure you have the desire to pay the person even if he or she is your best friend or part of your family. have some word of honor and attend to your obligations even if it takes you long to settle them. the important thing here is "credibility." you don't have to apply for a bank loan to know that.
• United States
14 Oct 06
i just pay off the lowest bills first. You need to have your credit report for this.
@bhbirdie6 (1771)
• United States
14 Oct 06
I like a tactic called "snowballing". You make all your minimum payments on all your debt except for one. This one you make the minimum payment plus any extra money you have. You can choose to pay off the lowest debt first or the debt with the highest interest rate or whatever you want to get rid of most. Then, once that's paid off, you put the money you were spending (the minimum of the paid off debt+ the extra) towards your next debt. It works very well. Good luck!
@nancygibson (3738)
• France
13 Oct 06
this really worked for me http://www.quazen.com/Home/Personal-Finance/Managing-your-Debts,-a-common-sense-approach.525