How to Meet Debt Obligations

Your debt has been piling up and now it's time to start meeting your debt obligations. Taking care of your debt will improve your credit score and it will improve your mood--you'll no longer have to worry about paying debts once you make that final payment. Unfortunately, there's simply no easy way out of paying your debt. You'll need to be frugal and financially responsible. Once you learn these techniques, you will hopefully never be in debt again.

Instructions

1

Get rid of your credit cards without closing the accounts. Credit cards make it easy to spend money that you don't have, but closing your credit card accounts can negatively affect your credit score. Cut up your cards or freeze them in water to make it difficult to use them while you try to meet your debt obligations.

2

Determine how much debt you have and when the bills are due. Take a look at all of your statements. Add up the total balance to see how much you owe. Put your debts in order of due date so that you always pay bills on time, avoiding extra late fees.

3

Pay more than the minimum due. As you pay your bills, be sure to send extra money to apply towards the principal balance. If you pay only the minimum, it will take several years to get out of debt.

4

Apply extra money towards your debt. When you get a bonus, a monetary gift or an unexpected raise, take that money and pay down your debt. Yes, it's boring, but you'll feel much better when you've paid everything off.

5

Budget your money. When you plan for your expenses, it's easier to keep track of spending habits and avoid overspending. For example, you can allot yourself just $200 per month to spend on food and work toward only spending that much money. This should free up some money that you were previously spending on unnecessary items, so use that extra to pay down more debt.

6

Remain diligent until you've met all debt obligations. After awhile, you may want to celebrate by buying more things. But don't do this. It will only put you back into debt. You must remain frugal until you've paid off all of your debts.