A 3 Step Formula to Get Out Of Debt

Aug. 13, 2009 - PRLog -- 1-Make List of Your Debts
First of all you need to know how deeply you are in credit card debt. Many credit card holders are shocked when they know the total extent of the amount of credit card debt to be paid. They unconsciously stay away from compiling this list, but in order to resolve the problem you cannot out this job off. Make a list of the lender name, date of debt, total amount to be paid and interest rate and arrange the list according to interest rate. Highest interest rate credit card debts should be at the top of your list.

2-Pay Credit Card with Highest Interest Rate
You should always start by paying the credit cards with the highest rate first and always pay more than minimum amount requested. If you are addicted to minimum payment traps you will never be able to get out of debt. Mininimum payments are a means by which your credit card provider is able to make money perpetually from you without fear of your balance ever clearing and is commonly referred to as a 'debt trap', so always pay more than the minimum if you want to see your balance coming down. These small extra payments will save you literally thousand of dollars.

3-Start Frugal Living
For as long as you are in debt, you should start to look at methods of frugal living. Stop using your credit cards and ask companies to stop notifying you of new offers. Stop impulsive buying. Try to save every cent you possible can and use this cash towards paying an extra few dollars off your credit card, you will be amazed how much this will save you over the course of your debt.

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