Straightforward Ways To Get Out Of Debt

Financial freedom might seem out of reach while staring up at a mountain of debt, but no one appears at the top of Mt. Everest. You get there one step at a time.

The Big Picture

In a period of high inflation and interest rates, it’s more important than ever to kick down debt and build up savings. Debt.com found that 35 percent of people owe more debt than they have in their emergency savings.

Add Up Your Debt

Do you have loans, credit cards, fines, child support payments, or anything in collections? Comb through your accounts and get an accurate assessment of what you owe. Take note of the debt amount, interest rates, and how many payments you’re behind on. Debt.com even has a free debt worksheet to help you track it all.

Review your credit and budget

This might seem basic, but having these numbers down can help you. With your up-to-date credit report, you can gauge what kind of debt repayment plans you might qualify for.

Snowball vs. Avalanche Method

To use the snowball method, list your debts from smallest to largest. Start by paying off your lower debts, then slowly work up to the larger ones. For example, if you have a credit card with $1000 on it and a bill in collections worth $200, focus first on the collections bill.

Make Multiple Payment

Regardless of how you plan to tackle your debt, only making the monthly minimum payment won’t help you. It could just result in more debt because of interest. Always pay above the minimum; when you can, making multiple monthly payments is a great idea.

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