Your debts may have reached the point of giving you headaches. Worries could even consume your thoughts about a growing mountain of debt that interferes with future goals. You might even imagine falling into a never-ending cycle of financial instability. It's likely not as bad as it seems, especially when you have easy methods at hand to reduce your debt and get on with happy, healthy living again.
Write Down Objectives
Put your financial goals in writing, which provides you with more incentive. Knowing what you want to achieve in a certain period of time increases the chances that it will happen. Developing a budget helps you to live within or even below your means to save money and bring down debt. You will have a better understanding of your overall situation as you track incoming and outgoing money, which also makes you feel better emotionally. A budget plan specifically includes limiting your spending.
Earn Cash with Old Items
Sell some of those assets you no longer need. You can make instant cash through online sites such as eBay by offering up furniture items or some of the stuff that's been crowding your closets. There are many online forums where you can post for free. Some newspaper ads provide free advertising for items under a certain amount. Prints, models, knickknacks or even old toys can provide you with funds to handles debts without losing money.
Card and Loan Solutions
Try paying more than the monthly minimum on your credit cards. An extra $10, $20 or $50 a month goes a long way for debt reduction. Pay more toward your highest-interest cards. Or pay off the cards with the lowest balances first, which might be more affordable. You will get great satisfaction and motivation as you pay each of these cards off. Stop using your credit cards. Keep one for emergency situations, but hide the others, leave them at home or even cut them up as you pay off your debts. You can also contact your creditors and ask them for lower interest rates. Spend more on monthly payments for loans near completion. If you have three or four months to go on a car payment, you could pay it off faster, leaving you with more money sooner.
Consider home equity loans or loans on personal property, such as cars or boats, to pay off your debts. You can also apply for a new credit card at 0 percent interest to pay off higher-interest cards or debts. However, this risks putting you into more debt. It might work for people with good credit and who have debts they consider relatively low.
If you've done well in reducing your debt, you might want to reward yourself at the end of the month for a job well done with the extra money you have. Just don't get too extravagant, because you still want to pay down your debt. Treat yourself to dinner out or take in a great show.
Jerry Shaw writes for Spice Marketing and LinkBlaze Marketing. His articles have appeared in Gannett and American Media Inc. publications. He is the author of "The Complete Guide to Trust and Estate Management" from Atlantic Publishing.