How to Make Debt Vanish

It would be nice to wave a wand and magically wipe out your debts. Unfortunately, there's no easy fix for outstanding balances --- if you want to make your debts vanish, you have to work hard and make wise financial decisions. People often take on debt from auto loans, student loans or mortgages. However, credit card debt can hang over your head for years, and without a pay-off plan, you could pay thousands of dollars in interest charges.

Instructions

1

Know what you owe. Rather than assume or estimate a total, get your calculator and add up your debt balances from all your statements.

2

Assess extra income after bills. Write out your monthly budget to help you determine how much money remains after paying bills such as mortgage, transportation costs, food and other recurring expenses. Subtract expenses from monthly income.

3

Use extra income after paying bills to make your debts vanish. Paying off debt is a gradual process. Resolve to spend your extra income on debt and make higher payments each month to bring down balances.

4

Stop creating new debt. Take control of your spending and debt by slashing your credit cards in half to alleviate increasing balances on your credit cards.

5

Knock down those interest rates. The interest rate on your credit cards determine how fast you're able to pay down the balance because a percentage of your monthly payments goes toward the interest charges instead of toward the principal balance. Call credit card companies to request a lower rate, or transfer your balance to a low-interest credit card.