| Not sure how to get out of debt? Here are a | | | | interest accumulation on your existing debt. |
| few easy tips you can follow to get the best | | | | Debtors who own a house can seek a home |
| results in the shortest time. | | | | equity loan, or take a fresh line of credit. There |
| Incurring debt is easy, but managing debt is not. It | | | | are two advantages to taking such a loan. The |
| requires financial discipline and knowledge of debt | | | | first is that this loan is available at interest rates |
| reduction solutions to do so. One solution all | | | | much lower than those charged by credit card |
| counselors favor is to shift to debit cards. Once | | | | providers. The second is that you make only one |
| you do that, you spend only as much which as is | | | | monthly payment to the bank that provided the |
| in your bank account. The question of incurring | | | | loan. There is no fear of late fees, missing |
| new debt will not arise if you stick to your goal. | | | | payments, or harassment by debt collectors. |
| The second, and relatively easier, solution is to | | | | Another possibility is to take out a personal debt |
| reduce the number of credit cards that you own. | | | | consolidation loan. This can be obtained from |
| This can be done by taking a pair of scissors and | | | | banks, financial institutions, and credit unions. The |
| cutting all your credit cards, one by one. You can | | | | debt consolidation loan works like a house loan and |
| always retain one credit card for use only in an | | | | gives you the breathing space that you |
| emergency. This credit card should be the one | | | | desperately need to reduce your debts. |
| that charges the lowest rate of interest. These | | | | Debtors who don't want to take out a loan can |
| two steps -- reducing the number of credit cards | | | | consider selling 'unnecessary' objects lying in the |
| you have and obtaining a debit card -- will cut | | | | house. These may include jewelry, antiques, |
| down on your wasteful spending. You will then | | | | furniture etc. The income that this generates can |
| have more disposable income to clear your debts. | | | | be used to pay down the debt. Debtors can even |
| Your third step is to transfer all your old credit | | | | withdraw small sums from a savings account that |
| card balances to the card that you have retained. | | | | pays low interest and use it to clear debt. The |
| When you do so you lower the interest on your | | | | end goal is the same for all these methods: |
| cumulative payments. This is because some credit | | | | getting rid of high interest debt, and consolidating |
| card companies charge as much as 21%. You | | | | it so that you can face the music all in one place. |
| may want to consider transferring all your balance | | | | Hopefully, attacking just one debt source at a |
| to a card company that is offering a 0% balance | | | | time will allow you to win the battle more easily. |
| transfer scheme. This will further reduce the | | | | |