Tips to Getting Debt Free

A few charges to our credit cards, an auto loan, a home equity loan thats how debt sneaking up some bucks on our debt. All of those little things can add up fast. But even the biggest debts can get paid off if you follow these simple tips:

• Start at your ground

Before you can start tackling your debt, you'll need to know exactly where you stand. Gather up all your bills and account statements. Make a list of every debt, the current balance, and the current interest rate. Then organize them in the order you want to pay them off. Financially, it's smartest to pay off the debt with the highest interest rate first. However, many experts suggest starting with the lowest balance because it'll get paid off quickly. That way, you'll stay motivated to keep paying off your debt.

• Eradicate the Weak

Prepare a budget every month, and account for every dollar (including the spare cash). This may be the biggest of all Debt Free Tips you ever receive!

Find the little savings in your everyday life--that fancy cup of coffee, lunch from the deli, the magazine from the newsstand. Cut back on these types of extras and you can save hundreds a month! Find other ways to save, too, such as negotiating for a lower price on big purchases, using coupons at the grocery store, or buying your fuel from the cheapest gas station. Knock off all those channels on cable TV that you’ll just never watch. You can save a lot of money by having just the channels that you’ll seriously watch. Add up all those little savings each month, and send them as an extra payment on the bill you decided to pay off first (keep sending the minimum to your other creditors, too). In no time at all you'll have the balance whittled down to zero!

Be patient. Getting rid of all the debt that you’ve accumulated can be a very slow process and don’t be discouraged by it easily.

• Keeping it Rolling

Once you get one debt paid off, take that minimum payment--plus all the little savings you've accumulated--and add it to the minimum payment on the next debt on your list! You won't miss the money since you had been sending it to a creditor anyway. Keep this up and continue moving on to a new debt each time you pay one off. Also avoid getting into debt by using cash wherever possible. Having hundreds--or even thousands--in debt may seem daunting. But it is possible to get those balances back down to "zero." Just follow these simple steps, and you'll be on your way to a debt free life.