How to Consolidate and Eliminate Debt
There are many debt consolidation services that claim they can fix your credit and consolidate your bills, and infer that you can't do it yourself. That is not the case, however. You can do everything that they can, you just have to make time for it. Taking the proper steps go consolidate and refinance your bills will allow you to pay your debt off faster and live a debt-free life.
Budget
First, make a budget. Budget for every penny that comes in from your primary job, and side jobs and any other income that you have. Then, make a list of every expense you have, including loans, credit cards, housing, utilities, food, fuel, entertainment and any other expense that you have. Plan for every penny that you earn.
Contact Lenders
Next, contact your lenders and see if any of them will help you consolidate your debts onto one credit card, or into a single loan. If they will, you can roll your current debts into a consolidation loan or 0% interest credit card. But be sure to cut up and CLOSE your credit cards once the balance has been transferred off of them, to stop the temptation to charge on them again.
Debt Snowball
Finally, begin working on your debt snowball. There are two ways to do this. The first way is to organize your debts from smallest to largest. Then, after your minimum payments are made each month, put any extra money toward the smallest debt that you have. Once it is paid off, work on the next smallest debt, and proceed until all of your debts are paid off. Or, you can organize your bills from the highest interest rate to the lowest interest rate, and pay off the highest first. Either way is fine and does about the same thing, it's just a personal preference.
If you have any questions about this or any other financial topic, seek the services of a licensed financial professional. You can also visit Dave Ramsey's site for all kinds of solid information on getting out of debt and living a cash-only lifestyle.
More from this contributor:
How to Locate a Notary Public
Top Five Ways to Spend Your Tax Return This Year
How to Break Free From the Payday Loan Cycle
Budget
First, make a budget. Budget for every penny that comes in from your primary job, and side jobs and any other income that you have. Then, make a list of every expense you have, including loans, credit cards, housing, utilities, food, fuel, entertainment and any other expense that you have. Plan for every penny that you earn.
Contact Lenders
Next, contact your lenders and see if any of them will help you consolidate your debts onto one credit card, or into a single loan. If they will, you can roll your current debts into a consolidation loan or 0% interest credit card. But be sure to cut up and CLOSE your credit cards once the balance has been transferred off of them, to stop the temptation to charge on them again.
Debt Snowball
Finally, begin working on your debt snowball. There are two ways to do this. The first way is to organize your debts from smallest to largest. Then, after your minimum payments are made each month, put any extra money toward the smallest debt that you have. Once it is paid off, work on the next smallest debt, and proceed until all of your debts are paid off. Or, you can organize your bills from the highest interest rate to the lowest interest rate, and pay off the highest first. Either way is fine and does about the same thing, it's just a personal preference.
If you have any questions about this or any other financial topic, seek the services of a licensed financial professional. You can also visit Dave Ramsey's site for all kinds of solid information on getting out of debt and living a cash-only lifestyle.
More from this contributor:
How to Locate a Notary Public
Top Five Ways to Spend Your Tax Return This Year
How to Break Free From the Payday Loan Cycle
Published by Maggie OLeary - Featured Contributor in Lifestyle
Maggie O Leary served on active-duty in the United States Military from 1997 to 2010, before joining the Reserves. She is currently attending college full-time, pursuing a Bachelor s Degree in History. In ad... View profile
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