Get Rid of Debt Fast

So you have bad debt. You are not alone. The world is not going to end. Take a deep breath and relax. Panicking is not going to help you out of this mess. Patience and planning will! The following are some long term steps, that can lead to improved credit scores and ratings. It may take years for your actual credit to be drastically improved. At least you will have some peace of mind, because you are no longer in debt.

First Step:      Lower/Eliminate Existing Debt

1- List Non-Negotiable Expenses

(ex: rent, car, food, electricity, babysitter, insurance, cell phone, home phone)

2- Make a Budget and stick to it

(monthly income - expenses - debt = money for savings)

(plan for fun things, if necessary, but don't stray from the budget)

3- Make a List of all of your Creditors and how much you owe to each one

4- Set a time frame for repaying what you owe (ex: a year)

5- If you pay bills biweekly use this: (a year = 24 payments to each creditor)

* add all debt

* divide by 24,

* divide the answer by the number of creditors

= amount you will need to pay every two weeks to each creditor until there is no more debt.

If you pay bills monthly use this (a year = 12 payments to each creditor)

* add all debt

* divide by 12,

* divide the answer by the number of creditors

= amount you will need to pay every month to each creditor until there is no more debt.

(Disclaimer: please ask a professional for financial advice, this is my opinion based on personal experiences and may not apply to everyone)

Now that you have a game plan for lowering your existing debt. Let's look at ways that you can minimize or eliminate the use of credit.

Second Step:     Plan and Save

Good old fashion common sense applies here. If you want something, plan and save for it. You will get greater satisfaction when you finally get what you want. It will also be "guilt" free because you paid for it.

If you use Credit, Use it Wisely

If you just gotta have credit, then be careful. Don't buy things you can't afford to pay for in a short amount of time. Pay your bills on time. Try to may more than the minimum payments. If you fall behind on payments contact your creditors ASAP.

Remember, this is all about money. Money comes and money goes but the things that truly matter can last a life time. Hey, the best things in life are free anyway.