advice

Ways to get debt free on your own

Are you struggling to dig yourself out of debt? Becoming debt free has become a necessity keeping in mind the economic conditions that are always fluctuating. Getting yourself out of debt may be a strenuous process, but it is not impossible. Living a debt free life is more of a dream. Make your dream come true by following these few smart steps.

1. Control the usage of credit cards: Cut short your usage of credit cards. To save yourself from drowning into further debts, it is very important to deny yourself access to your credit cards, only if not for an emergency. Once you have paid off your debts, you will have this tendency of overspending again. So, it is a must that you have to curb the habit of purchasing things with your credit card.
2. Organize your debts: Draft a plan on pen and paper. Make a list of all the debts that you owe with the monthly payments and interest rates applicable to each of the debt. See where you stand before you start paying off your debts.
3. Prioritize your payments: Arrange your debts in a descending order. Attack your debts as soon as you are done with all the calculations. Pay off the debt with the highest amount and with the highest rate of interest. This will help you to become debt free faster.
4. Negotiate with your creditors: Go and negotiate with your creditors and ask for a settlement offer. It often happens that your creditors agree to settle on an amount which is 75% less than what you actually owed. Call or write to your creditors and ask them if they would agree in a debt settlement.
5. Save money for repayment: Save as much as you can so that you can accumulate your savings amount to repay your debts. It may mean a few months of eating at home than in the restaurant. Divert these extra funds towards paying off your debts as much a possible.
6. Get help: If your debts are overwhelmingly large in number, then get help from some professional. You can either seek help from a credit counseling agency. A credit counselor gives you advice on managing your debts by devising an effective budget for you.

Now you know that it is not much tough to get debt free on your own. Just take the required steps and work your way out of debt and towards a brighter future.