How to Reduce Your Debt Yourself

Reducing massive debt yourself isn't something you can accomplish overnight. Debt can include medical bills, credit card bills and other loans. Whether you acquired debt from poor budgeting, overspending or illness, you can resolve debt on your own. Some people choose to work with debt management companies. However, these types of companies tend to charge service fees. Learn tips to get rid of debt without professional help.

Instructions

1

Calculate how much debt you're carrying. Compute the sum total of your debt balances by writing down the number from each statement and adding the figures.

2

Cut your spending to create additional cash. Increase monthly cash flow by eliminating certain expenditures. Perhaps you can reduce eating out and cook meals at home, or take public transportation or car pool to reduce transportation costs. Shop less and reduce the amount you spend on pampering services such as hair, massage and nail appointments.

3

Ask for overtime work. Talk to your employer to see if you're able to work longer hours during the week or if you can take weekend work. Overtime pay can provide additional cash to pay down your debts.

4

Talk down your interest rate. Ask credit card companies to lower your interest rate. By complying with your request, you will pay less interest every month and pay down your balance quicker.

5

Rely on available cash. Don't use credit cards to purchase food, gasoline or pay bills. Use your cash and take credit cards out of your wallet to remove any temptation.

6

Give creditors and lenders more than what they ask each month. Increase payments on your own to help reduce your debt faster. Paying more and paying your bills more often (send a payment every two weeks) helps reduce how much you owe in interest, and can pay down the balance sooner.