Contrary to what many people believe, it is possible to get out of debt and stay out of debt. Here is a simple plan for paying off those credit card balances and bank loans.
The first and most traumatic step is to make the decision to get out of debt. This is not easy for most people. Changing your level of debt means changing your lifestyle. That change will require a major adjustment in the way you see yourself and your life.
After you’ve made the decision to live a debt-free lifestyle, you should figure out exactly how much debt you have. Make a list of all your debts. You will use this list to make an orderly plan to pay off every penny of your debt.
When making your list, include all your credit card accounts, bank loans – including mortgages, car loans and student loans – any balances you might owe to medical providers, and any other outstanding obligations that you pay on a monthly basis.
The idea is to cross the debts off your list, one at a time, beginning with the smallest debt first. Here’s how you’ll accomplish that: while making minimum payments on all your other debts, apply any extra money you can scrape together to pay off the smallest debt on your list as quickly as possible.
It is important that you not borrow money to do this. Part of the change you are making is to change your thinking about borrowing money. To live debt free, you must determine that you will not borrow more money. That includes borrowing money to pay off debts.
After you’ve paid off a small loan, apply the amount you were paying on that small loan to the next largest loan in your list.
This plan is simple to implement, though it will require determination and effort. As you pay off the smallest loans, you will begin to make more rapid progress in paying off the larger debts. You will get a sense of accomplishment that will keep you on the road to getting out of debt forever. For more info visit Credit Consolidation USA, they offer free quotes to help with most debt related problems that you are unable to handle on your own.