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Creating a Debt Free Life

Debt, it a word we are all familiar with and despise at the same time. Most Americans are in debt and don't know how to get out of it. There are many ways we have gotten into debt; student loans, credit cards, car loans, mortgages and bank loans. We keep seeing the debt get higher and don't know how to get out of it. I have debt and have been working my way out of it, but it does take time. I will help you with a few of my helpful hints. There are a few easy step to getting out of debt; pay more than the minimum payment, pay one off at a time, and put the credit cards away.

When you pay the minimum on a credit card you are paying mostly the interest and not your principal balance. When you pay over the minimum on your credit card you will be paying towards the principal balances. This will allow for your credit card to be paid off quicker and you will get out of debt quicker too. When you budget your money make sure you pay more than the minimum. When you do pay more than the minimum make sure you let the company of your credit card, know you are paying more towards the principal balance. With one of my credit card I had, they would pay the extra money towards the interest. So I have to let them know where to put the extra money. Since most of us have more than one credit card it may be hard to pay off higher amounts on all of your credit cards.

When you do have more than one credit card, you will have to look for interest rates and payments. Look for the highest interest rates and pay that credit card off first. This allow you to not pay high interest rates. If you have cards with smaller amounts on them pay off those amounts first, which will eliminate those credit cards. You will then have fewer credit cards to pay off and will slowly be able to pay more on your higher amount credit cards. You may need to budget a bit tighter when paying off you credit cards, but in the end you will be out of debt. While paying on your credit cards, don't use your credit cards. This will only allow for you keep paying off debt.

When I started to pay off my debt, I had a ceremony for my credit card. Yes I cut them up and throw them away. My credit cards died and so would all of my debt. I knew the temptations of having them in my wallet or the house. I was not going to let this happen. When you do pay off your debt, get rid of your credit cards. That does not have to mean cut them up, but give them to a trusted love one or freeze them in ice. Just don't use them. You could become discourage when the debt is not going down but up due to new charges. There are a few budget tips to help you pay off your debt.

When paying off your debt, try to cut out as much spending as you can. You may cut out of your  budget entertainment, restaurants, and shopping. All of these are not need for a budget but will help you save more money to get out of debt. When you do get out of debt you will be able to budget more wisely. This may take some time but you will be happy in the end.

Debt, may no longer be a bad word for you. It may in fact be a word you have overcome; which could be the best feeling in the whole world. When you are out of debt you will be able to live; A Stress Free Financial Life.


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