Most adults in the United States have some type of debt. This debt can be in the form of student loans, a home mortgage, credit card or outstanding bills. Some people are unable to pay their debts because they simply lack the financial resources to do so. However, others may have the money available but lack the information necessary to get themselves out of debt.
List
If you have the money to pay off your debts you have already overcome the most difficult hurdle to getting out of debt. First identify who your creditors are and how much money you owe each of them. By doing this you will get a clear picture of your debt obligations. You will also be able to make sure that you actually have the money to pay all your creditors.
Schedule
The next step in getting rid of your debt is to create a schedule of when and how each creditor will be paid. In most cases if you have debt beyond your regular monthly bills, this is an indication that you are past due and that you may have to consider things like late charges, interest and other penalties when determining when and how to pay your creditors.
Contact
If you are behind on your debts you should contact your creditors to work out a specific time for repayment. Some creditors may be willing to reduce the total amount owed if you can make one lump sum payment. It is also important for you to contact your creditors to let them know you plan to pay them soon. This may prevent additional debt from going to collection agencies or incurring legal ramifications.
Repayment
When paying off your debt you should avoid using one form of debt to pay another. An exception to this would be if you have a credit card that you are current on and can safely use without incurring any additional debt. Each time that you pay a creditor you should be sure to receive a receipt in writing to avoid the possibility of any future dispute as to whether or not the debt has been repaid.
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