3 Step Debt Reduction
Updated: Apr 23, 2018
3-Step Formula to Get Out Of Debt
1-Make List of Your Debts
First you need to know how deep you are in credit card debt. Many credit card holders are shocked when they calculate the total credit card debt to be paid. We as people unconsciously stay away from compiling this list, but is a necessity to getting rid of debt. Make a list with the following: lender name, date of debt, total amount to be paid and interest rate. Make sure to arrange the list according to the interest rates.
2-Pay Credit Card with Highest Interest Rate
The highest interest rate credit card debt should be paid first. Always pay more than minimum amount if you can. We have to break the habit of being addicted to minimum payment traps, paying the minimum amount will cost you tremendously in interest. The way debt traps are arranged it could take years to pay off just paying the minimum amount. ALWAYS pay more than minimum. These small extra payments will save you literally thousands.
3-Start Living a Frugal Life
As long as you are in debt, start to live more frugal. Cut off certain credit cards that are not used or needed. Be mindful of the "I owe it to myself syndrome". We all have periods in our lives where we're sad, going through emotional distress, or even excelling in life and feel like we owe it to ourselves no matter the cost. Stay strong and try to save every penny that's possible. These are just a few steps towards helping you to become financially free. Please let us know if you are interested in learning more.