How to Manage Your Bills and Get Out of Debt

Having too much credit card debt can induce stress and cause sleepless nights. But there are plenty of fast ways to get rid of debt and improve your credit rating. A good debt elimination strategy will likely call for major sacrifices on your part, and you may have to change your lifestyle and spending habits. But with a little self-discipline, it's possible to eliminate credit card debt.

Instructions

1

Increase payments significantly to pay off debt quickly. Forgo entertainment or non-essential shopping until you've eliminated your credit card debt. Rather than pay the minimum on a $1,000 credit card bill, make sacrifices and make higher payments each month. You can eliminate this debt in four months by paying $250 each month.

2

Use personal savings to clear debt. You may feel uncomfortable dipping into your emergency fund to pay off debt. However, high interest rates make these debts hard to pay off in other ways. If possible, use your savings to eliminate debt fast and then rebuild your personal savings.

3

Sell a possession. Look through your closet or other storage areas and find personal belongings to sell, perhaps an old fur coat/leather jacket, electronics, unused jewelry or furniture. Use the proceeds to pay off debt.

4

Put your home up as collateral and apply for a home equity loan. The interest rates on these loans are often lower than credit cards, which equals lower payments.

5

Start using cash for purchases. Continuing to use credit while attempting to pay off unsecured debt continues the cycle of debt. Cut up your credit cards to eliminate any temptation and only buy items when you have the cash.

6

Make timely payments. Missing a payment or sending a late payment may prompt your creditor to charge additional fees. These fees can accumulate and increase your debt balances. Pay all your bills by their due dates.

7

Avoid going over your credit limit. Credit card companies impose credit limits, and overcharging or exceeding this limit will result in a fee. Companies charge a fee for every month your balances remains over the limit. Only charge what you can afford to pay off and monitor your credit activity to stay within limits.