Monday, March 3, 2014, AM | 2 Comments
People throughout the developed world have high levels of debt. Some of this debt is a result of a home mortgage or student loans. Other debt is related to consumer spending that could probably have been avoided. Regardless of the source of debt, getting out of debt is a very freeing process.
Why not make 2014 the year to get out of debt?
Here are five ways to help make that happen.
Stop Using Credit Cards
Credit cards are convenient for those who are disciplined. They are also a convenient opportunity to spend over and above one’s means.
For those who have fallen into credit card debt, the first step in getting out of debt is to stop using these cards.
Pay More than the Minimum
Getting out of debt in 2014 for all but those with the smallest debts will probably require paying more than the minimum amount due each month.
Those who are able to double up on payments will see the balance due start to come down quickly. The smaller principle will start to make paying down the debt seem more achievable.
Start a Debt Snowball
Financial guru Dave Ramsey recommends paying off debt through a method known as the debt snowball. This method requires paying the maximum amount available on the smallest balance while paying the minimum on all other debts.
After paying off the first debt, that money can then be paid on the second-smallest debt. The process then repeats itself until all debts are paid off.
The progress of paying off the first debt makes the process of paying off debt seem more achievable.
Use a Tax Refund
Most Americans who work and have kids will get a tax refund. For some families, this refund can be several thousand dollars.
Rather than using the refund to go out and buy a big-screen TV, why not use it to pay off debt? A sizable refund can make a big dent in debt.
Starting an online business or getting a second job might not seem all that exciting to some people, but it can be a good way for those who are swimming in debt to pay it down more quickly. When taking this route, it is important to remember to use all of the extra income toward paying down debt.
Staying out of debt is a good way to avoid having to use McLay or other firms for bankruptcy proceedings.
Getting in debt is easy. Paying it off is hard. These are just five ways to pay off debt in 2014. There are many other creative ways for those who are willing to brainstorm and find them.Facebook.com/doable.finance