How to Get Rid of Massive Debt

Massive debt can consume your mind and create anxiety. But rather than let debt control your life, take charge of your finances and consider ways to eliminate debt faster and improve your credit score along the way. The amount you owe your creditors has a 30 percent impact on credit scoring, says MyFico.com. Once you control your spending and begin to reduce balances, you'll notice an increase in your personal score.

Instructions

1

Increase your monthly payments to reduce the principal faster. A routine of only forwarding your minimum payment doesn't reduce massive debt. If your creditor requires a $20 minimum from you each month, send in higher payments--perhaps $80 or $100 a month.

2

Resist the urge to add new monthly charges. It's pointless to make higher payments each month and then continue to use your credit card. Stop the debt cycle by destroying credit cards and only carrying cash in your purse or wallet.

3

Reduce spending. Carrying cash in your wallet isn't an excuse to buy unnecessarily. Rather than waste money, buy only what you need and use your extra income to pay down your massive debt load.

4

Take cash from your equity. Discuss equity options with your mortgage lender. Refinance your home loan and take cash from the equity to pay down debt, or apply for a home equity loan to help reduce or eliminate your debts.

5

Use all income from a part-time job to help get rid of debt. Work a few hours in the evenings or on the weekends to create extra income for debt elimination. Earn an extra $200 a week and you'll increase your monthly earnings by $800. This can pay off an $8,000 debt in 10 months.