- Quit borrowing more money—it is that simple.
- You must start saving money—for emergencies that will tempt you to use your credit card.
- Sell things—clean out your garage, basement, or attic and get rid of some stuff to pay off your debt.
- Take a part time job or overtime—as a temporary way to help get rid of extra debt.
Now that you have done all of that it is time to create your debt pay down chart. List your debts in order from the smallest balances to the largest. Do not be concerned with interest rates, the idea is to see your debt disappear quickly and this method works quite well.
The idea of pay down debt is to pay the minimum payments on all of your debts except for the smallest one. Then every extra dollar that you can get your hands on goes towards paying off that smallest debt until it is gone. Then you approach the next balance and go after that as fierce as you can. You take the minimum you were paying on the first one and add it to this payment as well along with extra money and pay it off.
You continue onward adding each minimum payment to the next debt to be paid. Eventually you will be making large payments and paying off huge amounts of debt.
When you are consistent at working to completely eliminate your debt you will start seeing your numbers go completely down. Eventually you will feel your burden by eliminating this large amount of debt hanging over your head. You might even be encouraged to make as much money as you can to quickly pay off your debt, thus making you DEBT FREE!