Essentially, you take a sizable loan, use those funds to pay off all your creditors, and then make monthly payments on the loan. The loan may be obtained through debt relief companies, or through your bank, or as a home equity loan if you own a home. ... The interest rate on a debt consolidation loan is likely to be high.
If you're looking for some easy ways to cut down your debt, follow the advice of these U. S. News My Money bloggers. Create a budget. ... Pay off the most expensive debt first. ... Pay more than the minimum balance. ... Take advantage of balance transfers. ... Halt your credit card spending. ... Put work bonuses toward debt.
You should tackle bad debt first. Step two: Figure out what will give you the biggest boost. From a financial perspective, it's smart to pay off your highest-rate bad debt first. After all, putting $500 towards a $3,000 credit card bill with an 18% interest rate will save you far more than paying off a $500 bill at 6%.
11 Strategies to Help You Pay Off Credit Card Debt Fast Stop Using Your Cards! ... Use a Credit Card With No Balance for Normal Purchases. ... Budget More for Debt Repayment. ... Cut Expenses and Allocate More to Debt Repayment. ... 5. Make Extra Payments Using New Money. ... Ask for Lower Interest Rates. ... Pay the Highest- Interest Debts First.
Taking Action to Legally Eliminate Your Credit Card Debt Pay Off the High- Interest Balance First. ... Pay Off the Smallest Balance First. ... Put Your Credit Cards On Ice. ... Eliminate Other Expenses. ... Become a Freegan ( Kidding… Sort Of) ... Sell Your Junk. ... Increase Your Income. ... Call Your Credit Card Companies to Negotiate a Better Rate.
Here are some steps to help you get your debt under control: Aim to pay off debt using incoming cash flow, not savings. ... Make all minimum payments on time. ... Pay down debts with the highest interest rate first. ... Evaluate paying off low-interest debt versus saving more. ... Save money by paying off your credit card each month.
5 Ways to Reduce Your Credit Card Debt Starting Now Create a budget. The first step to solving your debt problem is to establish a budget. ... Reduce your monthly bills. Some of your regular monthly expenses aren't set in stone. ... Cut down on unnecessary purchases. ... Rethink entertainment. ... Reward yourself along the way.
Method 1 Paying Off Your Debts Quickly Create a budget. To pay off debt, you need to live within your means. ... Find a part-time job. In addition to reducing expenses, increase your income. ... Sell your possessions. ... Ask for a lower interest rate. ... Choose which debt to tackle first. ... Keep accounts open even when paid off.