1-Make List of Your Debts
First of all know how much deep you are in debt. Many credit card holders are shocked when they know the total credit card debt to be paid. They avoid compiling this list. However, you will have to know your total debt status. List down lender name, date of debt, total amount to be paid and interest rate. Arrange list according to the amount owed. List the lowest balance first.
2-Pay Minimum Payments
Next start paying the minimum payment on all debts except the smallest balance. After your budget, take everything leftover and throw at that debt. In no time, it will be at zero, and then you move on to the 2nd on the list. Keep this routine up, and you should be debt free in literally months! The average time after getting on this plan is 2.5 to 3.5 years.
3-Start Frugal Living
For as long as you are in debt, start frugal living. Cut off your credit cards. Ask companies to not offer you more credit cards. Discard impulsive buying. When you get on a budget, and give every dollar a name at the beginning of the month, you will take control of your money instead of your money controlling you. Try to save every penny if possible. These few dollars added to minimum payment amounts will create a snow-ball effect towards your credit card debt payments.
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