If you missed last week’s 5 tips, you can read Tips to Get Out of Debt – Part 1 here.
1. Bring in extra money.
Look for jobs to earn money to pay down your debt. This may be watching children, delivering newspapers, cleaning houses, etc. Also look into selling your assets. Gather items throughout your house, determine what you can live without, and then hold a yard sale.
2. Chip away at the debt.
Rank your debt from highest to lowest interest rate. Pay off the highest interest rate credit card first. Any extra money you have, use it toward paying off debt until it’s gone.
3. Trim unnecessary spending.
Cut down on your discretionary expenses. This includes dining out, buying expensive new clothes, taking pricey vacations, and other such unnecessary expenditures.
4. Become a savvy shopper.
Look for deals, bargains, and savings. You can save a lot of money if you take the time to shop around. But make sure only to buy things that you need and not just because it’s on sale.
5. Get Organized.
Getting your documents in order will help you pay down your debt. If the documents are all over the house in piles, you won’t even know what debt you have. Use a file folder system and tabs. Do this with your spouse so you both understand the system.
All the 5 tips are good. These tips can certainly help you get out of debt. The first tip is the most important one. You need to earn extra dollars to pay off your debts fast. You need money to pay back your creditors. If you have enrolled into a debt settlement program, then you need the money to pay the fees of the debt negotiators.