With the Fiscal Cliff in the news so much lately, many of us are re-evaluating the way we think about, spend, and save money. It is never too late to take control of your money or even to learn new and better ways of spending. The first step for many of us involves finding a rapid debt reduction method to get out of debt as soon as possible.
By following one or more of these strategies listed below, you can achieve rapid debt reduction. Just use this as an opportunity to make permanent changes to your financial outlook. If you follow these steps and change your habits you can have the secure financial future that you dream about.
Here is a list of 3 simple steps to rapid debt reduction you can start using today so that you can be debt free for the rest of your life:
1) Bring more money into your household. I know at first this may seem impossible but it’s not. If you can’t just add a part time job you should consider cutting back on some daily expenses such as eating out or buying coffee everyday. Use coupons or shop at cheaper stores.
- Switch from brand name groceries to the store brands. All of these things can help you free up some extra money. If you apply that extra to your debt you can pay it down much more quickly than you will if you aren’t paying anything on the principle, which you aren’t if you are only making the minimum payments.
- Another way to bring more money into your household it to sell things. Anything you don’t want or need. You can have a garage sale or sell it on Ebay. Again, this may not bring in a lot of extra money but every little bit of extra money you can apply to your debt will help you get it paid off more quickly.
2) Talk to the bank or credit card company. Banks are really taking a hit these days with so many people defaulting on mortgages and credit cards. They are more willing than ever to work with you.
- They might agree to lower your interest rate which would mean that for the same amount of payments you would be applying some to your principle and not just your interest (which is what you’ll have to do in order to get your debt paid off quickly).
3) A debt consolidation loan. This will allow you to get one loan that will cover all your debt. That way you’ll have only one payment which will be lower than the 10 different payments you were making before. For this to work, you will have to cut up the credit cards you just paid off. Otherwise, you may be tempted to start charging on them again. If you do that you will be right back where you started.
If you follow the strategies listed above you can find yourself debt free very quickly, however there is something you need to keep in mind. If you use one or more of these strategies to get out of debt you have to be disciplined enough to not use your credit cards anymore.
That is a vicious cycle many people find themselves in. They pay off some debt and then turn right around and make frivolous purchases and are right back where they started from. In order to live debt free you have to learn to live within your means and for many that is going to be the hardest part.