Easing the burden of debt is a slow process, but it can be achieved faster if you follow these 4 tips to clear debt. Once done, the path is clear to debt freedom and financial soundness. Building up debt took some time, and perhaps a little carelessness. Getting rid of debt will also require some time, and financial care.
1. Take time each week to look at the type of purchases you have made. Determine if these purchases fit into your budget. When you shop, use a list to help avoid impulse spending. As you save money this way, apply that saved cash towards your debt load.
2. Chart your credit accounts. Make a list that includes all current interest rates, and any other fees. Look at each account’s list of terms and conditions to be sure nothing has changed recently. New credit card laws have caused companies to make some adjustments that could affect your account. Work on paying off the highest interest accounts first.
3. As you can, make extra small payments on your debts to reach debt goals faster. Even a small additional amount, like $5, will speed this along. Also, under new credit card laws, the credit companies must apply any additional payments to charges that carry the highest interest rates, like cash advances.
4. If you come into extra money from a tax refund, an extra job, or other source, use it to pay down your debts. Be sure to always make payments on time and schedule them into your monthly budget plan on paper.
Keeping a watchful eye on your debt load and striving to make some additional payments will reap benefits quickly and help you to clear debt faster. The effort is more than good; it will lead the way to debt freedom in your future. When you are debt free, you will have all that extra money to save or invest for your own benefit instead of sending it to a lender. Use these 4 tips to clear debt while you watch your balances go down and your 2011 credit score go up!