Do it yourself debt reduction-how deep is it
If you have a little bit of debt and want to turn things around, or if you are so deep into debt that you think it's impossible to get out, then you have probably wondered if do it yourself debt reduction really works. The answer is that it absolutely does work, so don't fool yourself into thinking otherwise. The further into debt you are, the more time and effort it's going to take, but you can do it.
You must do two things immediately if you want to get out of debt. The first is to make a firm, 100% commitment to getting out of debt, whatever it takes. That means no making excuses when it gets hard. The second is to stop going further into debt, so it's time to cut up your credit cards. This also means that you can't make "just one little exception". Are you cutting up your credit cards now? If not, then you have to ask yourself if you are 100% committed or not.
Okay, you are committed and you're not getting any deeper into debt; you're off to a great start! The next step in do it yourself debt reduction is to lower as many of your expenses by as much as you possibly can. Make it a challenge to see how low you can go, then go even lower once you get there. Now, you may be thinking that you want to lower your debt, not live like a pauper. That's understandable, but right now your focus is on financial freedom, so if that means slashing expenses for a while then so be it.
You are saving all of this money so you have more to apply to your debt. Pay the minimum amount due to all of your creditors except one (which one that is will depend on your overall plan); that's the one that is going to get all of the money you're saving. They will continue to get the extra amount until they are paid off, and then you will allocate all of your extra money to the next creditor on your list.
You have two basic choices for your do it yourself debt reduction plan. You can either pay off the debt that has the lowest balance, or pay off the debt that has the highest interest rate. Both plans work very well, but paying off low-balance debts first will give you a psychological boost which can motivate you to work even harder. Regardless of which method you use, as each creditor is repaid, you will have even more money to apply to the next debt on your list (the one with the second-lowest balance, or the one with the second-highest interest rate).
Whatever do it yourself debt reduction plan you choose, it is vital that you stick with it. There will be challenges and it won't always be easy, but it can be done. Besides, imagine how awesome it will feel to be free from the crushing burden of debt.
TAGS: do it yourself debt reduction how deep is it, debt reduction advice, debt advice, bad debt advice
Article Source: Messaggiamo.Com
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