Whether you have debt from the holiday season, student loans or credit cards, there is no better time than the present to get rid of it. Just think how good it will feel to stop paying creditors and start paying yourself! Below are some tips to help you become debt free!
Make a plan.
There are two popular ways to map out your debt repayment plan.
Highest interest rate: Pay off the debt that grows the fastest first. One example of this method comes from the Spending Fast plan.
Lowest balance: Pay off small debts first to help motivate you. Personal finance expert Dave Ramsey takes this approach in his Debt Snowball Plan.
Negotiate lower interest rates.
Calling creditors to negotiate lower interest rates may help you get a better rate and make it easier to pay off the debt. There is no harm in asking!
Know your rights.
Creditors must follow federal law and they cannot harrass you or use unfair practices to try to collect a debt. They may not call between the hours of 9 p.m. and 8 a.m. They also must honor any written request to stop further contact.
Avoid NEW debt.
Paying off current debt is a lot harder if you are still using those credit cards. Cut unnecessary expenses from your budget to keep from going into further debt.
Stay positive.
There is no magic wand you can wave to make your debt disappear. It is a process that takes time. Look to people like Indiana's own Queen of Free, Cherie Lowe. You can even contact her via social media for inspiration!