How to Get Debt Off Your Back

If you're feeling burdened by all the debt you're carrying, take action to pay it off quickly and free yourself. Debt is a burden, not only because paying the bills requires some of your money every month, but also because being in debt is psychologically stressful. With discipline, you can pay off the debt far more quickly than scheduled by cutting your spending in other areas and making extra payments on a regular basis.

Instructions

1

List the amount owed, the interest rate and the monthly payment for each debt.

2

Change the order of the list to prioritize the debts. Choose from one of a few methods of prioritization. The most financially advantageous is to put the highest interest rate at the top of the list. If paying off an account will give you an emotional boost that motivates you to keep trying, put the smallest balance at the top of the list. If one particular debt is causing you more stress than others, even if it is not the highest interest rate or lowest balance, list that one first.

3

Add up the minimum monthly payments for all of the debts. This is your minimum total debt payment.

4

Create a balanced household budget that includes at least the minimum total debt payment as a monthly expense. If you can cut expenses to make an even higher monthly debt payment, do this to pay off your debt more quickly.

5

Make the minimum payment on all of your debts except the one at the top of the list every month. Subtract each of the payments you have made from your total monthly debt payment to find out how much money to pay toward the debt on the top of the list. As your minimum payments on other debts decrease, your top priority debt payment will increase.

6

Cross off a debt when you have paid it off and start making extra payments on the next debt on your list. Keep your total debt payment the same, even when your minimum payments decrease.