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9 Easy and Simple Tips For Clearing Your Debt

Sell things

This is the simplest way to gather some spare cash from unused belongings. Collect all those old lawnmowers, ornaments and other junk for a garage sale. This isn’t the only way to go about it though. For those more expensive items, websites like eBay and Craigslist make it easy to sell stuff to a huge audience.

Scrimp & save

You’ll be surprised how much you can save when you choose to walk instead of drive those short journeys or take your own bags to the grocery store. By doing these small acts of frugality, you can trim the fat off your savings and find yourself able to sustain this lifestyle for a lot longer than the people around you.

 Play The Interest Rates

Most of your credit cards will have varying interest rates. To save yourself money, your focus should always be on those with the highest interest rates. Paying these off first will mean you spend less on those inflated interest rates. Try and pay back the minimum amount on the low interest cards and invest more in the higher ones.

 Know your debt

If you are in debt, it’s imperative you know exactly how much you owe. Look online and check your bills with a calculator, totting up all your fees. Take into account the varying interest rates and calculate yourself a figure of exactly what you owe. This will give you a goal to aim for and put your debt into an understandable figure.

 Ditch The Plastic

The reason you are in debt in the first place is because of credit cards. No matter how essential they were at the time, they landed you in this debt and using them won’t help you get out of it. Cut them up and don’t use them. Stick to debit cards so you are only spending your own money and not digging yourself deeper!

Keep A Spending Diary

Like knowing how much you owe, you need to know how much you spend. Keep a precise track of how much you spend monthly. This will help you to calculate how long you will be in debt for, which is information you can use to make a solid plan to rid yourself of credit card debt.

 Get a Savings Account

It might seem crazy if you are in debt to think about making savings when you could be paying off, but it can actually help. If you don’t save, what’s going to happen when an unexpected expense creeps up on you? You’ll have to use those credit cards again, putting you straight back in a ditch. On the brighter side, when you end up out of this debt it’s always good to have a financial cushion to fall back on.

9 Tips For Clearing Debt 1

 Increase Your Income

Although it’s harder than it sounds, earning more money will be the most essential factor in getting you out of debt. Whether it’s taking up another job at the weekend, inputting data, Christmas temping, babysitting or mowing lawns, every little helps if it’s contributing to knocking the edge off your debt. Apply all of it to your credit card debts and you will see the difference.

Know When You Need Help

It’s important to know you’re not on your own and the world isn’t against you when you’re in debt. Millions of people are in the same boat as you, and there is plenty of credit counselling services designed to help people like you.  Your states’ licensing department and BBB (Better Business Bureau) will help you budget and create a plan for free. There is no shame in this and the benefits will be worth it.

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