Get Out Of Debt

Getting Out of Debt Is Easier Said Then Done!

There’s no denying that bad debt is one of the most serious dilemma that affects the nation. If you’re one of those people experiencing the same problem, what can you do? How can you get out of debt?  Most people look to get a loan.  But because your debt to income ratio is so high, many banks will shy away from giving you a loan.  Here are a few tips to help you get your debt under control!

Create A Simple Budget

Create A Budget. A written budget would help you plan your monthly expenses and avoid unnecessary purchases. When creating a budget plan, make sure that debt repayment is on top of your priority.

Tip: Some people purchase debit cards and will put their weekly, bi-monthly or even monthly expenses on it.  They know that what is on the card is ALL they have for the allotted time period. They claim this helps them cut out frivolous spending and increase the amount of money they are able to save or put toward repaying their outstanding debts.

Check the highest rate card. If you have existing balances in two or more cards, check which one has the highest rate and pay it off first. This way, you can cut back on the additional interest cost that you incur each month. Remember, the longer you prolong your credit card debt, the more interest  you’ll end up paying.

Utilize Balance Transfers To Get Out Of Debt

Transfer your high-rate balances. Credit cards with 0% APR introductory offer can be a helping hand. Transfer your high-rate debts to a zero-interest credit card so you can pay off your bills minus the interest.  Don’t forget to take note of the date the introductory offer ends!  Some of these 0% cards jump up into the double digits once the introductory period is over.

Put a hold on using your credit cards. Some people literally place their credit cards in the freezer to keep from using them. IF you find it really difficult to control your credit card spending, this could be a smart step for you.  The actual act of having to take the cards out of the freezer, wait for them to defrost and then go make the purchase gives you plenty of time to think… I really need this item?!

Don’t use your credit card for cash advances. Never take out cash from your credit card. Cash advances are not included in the grace period so you are charged with the interest rate the moment you withdrew the money. If it’s really an emergency, consider borrowing from a family or a friend.

Limit your spending. When in debt, cutting your expenses is obviously necessary. This is not the time for splurges or unplanned purchases. Do your best to only purchase whats necessary and make debt repayment a priority.  Think about it this way.  You can continue to do things the way you have been, and continue to enjoy worrying about your debt and sleepless nights.  Or you can try something different! Spend the next year feeling a little “uncomfortable” changing your spending habits and getting out of debt.  Then this time next year you can enjoy worry free nights!

Get a part time job. If possible, get a second job so you can earn additional income. True, it would definitely require more patience and effort on your part, but doing so will enable you to pay off your debts at a sooner time.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

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By Allison May

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on Guaranteed Approval credit cards, Unsecured credit cards for Bad Credit and other credit-related issues. The main objective here is to help people build good credit. Add Allison on

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