If you are finally ready to meet that challenge and get out of debt for good there are methods that work. Here's a look at how hard work and sacrifice can remove your debt for permanently.
To get out of debt you need to be committed to the end result and be prepared for a little pain in the process. This method is a simple and effective way to be debt-free.
You have to know exactly where you are starting from; you need to know your current financial situation. Make a list of all your expenses, including regular repayments,
food, entertainment, gifts, clothes, shoes, personal items, lunches, dinners etc.
Now that you can see exactly what you spend each day, week and month, look for ways to cut back so you have some spare cash. Perhaps take lunch from home on some days, rent a movie instead of going to the theater, swap a coffee a day for water. If you found that you spend more than you earn, then you need to take some drastic cutting-back action or find a way to earn more money.
The next list to make is your debts list; write down every debt you have, with the amount owing, the repayment amount and the interest rate. Include them all - credit cards, store cards, mortgage, personal loans, car loans and anything else you have.
Now find the debt with the smallest balance; you are going to get this paid off first, while maintaining the minimum repayments on all the other debts. You can utilize debt financial calculators to help you facilitate these goals. With this debt, you are going to make more than the minimum repayment using the spare cash you have saved by being smart. The more you can repay on this debt, the sooner it will be paid off and the more interest you will save.
Continue like this every month until the balance is fully paid. Now find the next smallest debt and repeat the same process. Keep all other minimum repayments going, but put the money you used to pay on the old debt, and your spare cash and its usual repayments onto the second debt.
Soon this one will also be paid off, so choose the next smallest and put all the repayment money from the first two debts plus the usual repayment for the current debt, until it is also paid off. Continue like this, through each debt in turn, until you are out of debt.
