Feeling overwhelmed with your monthly debt is not uncommon. You can, however, manage your debt and find relief. It may take some time, but it will be worth it when you see more of your paycheck in the bank and less going out to creditors.
Confront Your Debt
The first step in reducing your debt is confronting all those bills. Gather all of your bills and list them on a spreadsheet with the balance, interest rate, and minimum payment due on each. Take the loan or credit card with the highest interest rate and try to double the monthly payment on that bill while paying the minimum payments on all other bills. Continue doubling that bill with the highest interest until it has been paid off. Once that bill no longer exists, move the amount you were paying on that former bill to the next bill with the highest interest rate along with its minimum payment and pay that amount each month until it is paid off. Continue doing this until all of your outstanding debt is paid.
Cut Unnecessary Expenses
Another way to reduce your debt rapidly is to cut out any unnecessary expenses. Take the money you save from the unnecessary expenses that you normally spend and put that amount toward your bill with the highest interest rate. For example, if you go to the movies and out to dinner every weekend, you can cut out at least one of those weekends. A typical night out at the movies and dinner for two would be at least $50. Move that $50 towards your highest interest bill.
Find Additional Funds
Have a yard sale or sell items online to make additional funds. Be sure to take any money that you make off your sales and put it towards your bills. If you can make enough to pay off that highest interest bill, you are one bill closer to freeing yourself from the stress of debt.
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