3 Fool Proof Debt Elimination Strategies to Get You Out of Debt

Here some great debt elimination strategies I found on Debt Free Destiny that will help you eliminate debt. It basically points out three basic steps you will need to do to get out of debt.

There are three basic steps you’ll need to take to eliminate your debt.  The most important step can be accomplished starting right this minute, and will be the most important thing you can do to keep yourself debt free for the rest of your life!

Step One: Stop Using Credit, Stop Applying for Credit, Stop Generating New Debt

You might be surprised at the number of people who say they are trying to get out of debt yet they continue to pull out a credit card when shopping or paying for expenses, or who sign on the dotted line for financing furniture or any other purchase.  If you want to eliminate debt you have to stop using credit, it’s that simple.  You can’t get out of debt if you continue to add more debt.

Think you need a credit card for emergencies?  Think again – it’s probably those very credit cards that put you in this situation to begin with, and the fact that you used them for an emergency and now have that debt to pay back is why you don’t have money for the next emergency that presents itself.

Go through your credit card statements and find any recurring payments you’ve set up that use the credit card.  Gym memberships, Netflix, Gaming sites – anything that charges to the credit card automatically needs to be “turned off” at this time.  If you have to keep whatever service you were paying for on the credit card, have the bill sent to your home or have it deducted from your checking account. Stop using credit.

Contact your credit card companies and ask them to lower your interest or offer you a better deal on repayments.  It doesn’t always work but it’s worth a try.  Don’t cancel your cards though, as it can lower your credit score.  Keep them open – but don’t use them!

Step Two: You Need An Emergency Fund

When you stop using credit cards, you will need to have some money to pay for unexpected or emergency expenses.  The reason you may have gotten into credit card debt in the first place may have to do with an unexpected expense and a lack of savings – so you really need some money set aside to prevent this cycle from continuing.

Try to save about $1,000 as quickly as you can, while still making minimum payments to your credit cards and other debts.  Put the money in an account you can access fairly easily, but don’t tie it to the account you use all the time with a debit card or you’ll be tempted to use it.  Set aside $25 or $50 a week – whatever you can afford while making minimum payments until you have saved $1,000.  Cut back all unnecessary expenses (eating out, gym memberships, new shoes, etc) until you have this emergency fund established.

Step Three: Have a Snowball Fight With Your Debt… and Win

You’ve stopped using credit, you’ve got about $1000 saved in an emergency fund and now it’s time to eliminate that debt once and for all!  There are a few popular methods for getting out of debt – you can use the Dave Ramsey method of paying the smallest balance first to generate momentum, the highest-interest rate method to pay less in total interest, or the debt avalanche method, as coined by ConsumerismCommentary.com.

The most important thing you can do for your financial future is to eliminate your debt.  Start right now – don’t put it off like a diet during the holiday season!  The sooner you start, the faster you can make a difference to your financial situation.

Debt Elimination- What Must I Do To Eliminate Debt

You have decided you would like to eliminate debt but how does one go about it and what does it mean for you?

What must you do, and where do you start?

Debt elimination means owing no cash or debt whatsoever — the mortgage balance is paid off, there are no bank or finance loans, and credit card balances are paid in full monthly. If you are currently achieving these things, then you are really debt free.

We hear plenty about eliminating debt and many of us know that it is smart to be debt free. We also hear about the techniques to dump debt but a number of these techniqes appear to contradict each other.

When we discuss debt elimination and getting rid of debt we regularly think about credit card debt because there’s no term and the sole end to the debt until you reach you credit limit. But there are more debts that have high interest rates and high payment schedules that will set you back financially.

What to do and where do I start?

The following systems have been given all good recommendation by many debt specialists in the United States.

  • Stop getting into more debt. To paraphrase don’t attract new debt. This basically implies stop making unnecessary purchases particularly while getting your debt in order.
  • Cut up your cards. Live on money and not plastic. This way you’ll know how much money you have to spend, instead of worrying what you have available on your credit limit.
  • Pay more than the minimum payment. You should pay more than the minimum because most of time you minimum payment only covers the interest and hardly covers any of the principle balance.
  • Make a sincere dedication to create a budget, and control your spending. When you cut back on your cost you’ll have more to pay towards your debt. Put each dollar you can towards paying down your credit card and other debt.

In closing, the key to debt elimination is having a method that works for you in your current situation. The key points to remember are these: Create a budget, watch your expenses, create more income, and eliminate debt.

The Best Debt Elimination Advice is Usually Your Own Advice

There is a great deal of advice one can give on debt elimination. The best debt elimination advice anyone can really give to one interested in eliminating their debts is to be careful. In today’s crumbling economy there are people who want to take advantage of the weak minded and take money away from them. This is to be swayed away from. There are many people who would jump at the chance if the scam had a good offer. This is not true. Scams will only offer you a headache and money.

Another piece of debt elimination advice that is best to have when researching different options to your situation is the chance of credit counseling. Here you can talk with a qualified credit consultant who can show your options to you. With the consultant showing your debt to you, you are able to see the debt and know that there are ways to fix the problem. The debt elimination advice which you will receive from your consultant can help make a decision towards to what your next step is to do.

The next step which you are going to have to do is follow the instructions. This is really difficult for people to do. There are too many adversaries out there to deter us from our main goal. The path is easily strayed away from. Make sure to return your focus to your goals and what you want accomplished. This will help you know where you are and where you want to be. Having a financial plan drafted by your credit consultant can be very helpful debt elimination advice.

Whatever step you take to get closer to lesser debt, remember the debt elimination advice which you receive from the counselor or if you choose a different method is important. The information is sometimes difficult to retain and it is best to keep a calm head of the situations you are in. Debt elimination advice is just advice you can take or ignore. Do not stress and look at the end goals.