Tricks to Pay Off Debt Sooner

Debt can be a cumbersome obstacle for many who are trying to get out from under its burden. Through the use of planning, budgeting and self control, an individual or family can get out of debt faster than merely paying the minimum monthly payment. While it is not an easy task, the end result is well worth the hard work it took to get there.

Remove Credit Card Temptation

The first and most important step in getting out of debt is to avoid new debt. Remove the temptation of credit cards by taking them out of your wallet and placing them in a desk drawer. The mere act of having to "find" the credit cards will give you the time needed to think twice about your decision to use them again. Make a vow to yourself and your family to only use the credit cards in the event of an emergency.

Cut Expenses and Increase Income

Avoid overspending. Ask yourself before each purchase: Is this a want or a need? Avoid purchasing wants as much as possible until the debt repayment is complete. Review all of your expenses and reduce any unnecessary spending. Look at utility bills and see if transferring the service provider will reduce costs. Reduce frivolous services on your cable, cell phone, and Internet bills. Eat at home as opposed to dining out and use coupons at the grocery store to reduce your food expenses even more.

Find ways to increase your income, at least temporarily, through overtime, additional jobs, or by selling unused items at home.

Create a Budget and a Plan

Create a budget and a debt repayment plan. First, look at all of your expenses over the past few months--your checking account statement is a great place to start. Categorize all of your spending and account for each penny earned and spent. Look for ways to reduce your expenses further once you have created a preliminary budget. Remember to make a category for debt reduction and place all extra money "found" by reducing expenses or earning extra money into that category.

Create a debt-repayment plan. List all of your debts and pick which one you want to pay first. You may want to select the smallest debt first to give yourself a quick feeling of success. Once your first debt is paid in full, continue on with your plan until all debts are paid in full. Once all debts are paid, use the extra money in your budget to save for future expenses and to avoid having to use debt in the future.