How to Eliminate Debt Fast

Getting out of debt fast may be easier to achieve than you think. You just need to identify how your goal will be reached and then commit to the plan you have made.

Size up how much debt you have. Make a list of all your different debts if you have more than one creditor. Put the debts into a prioritised list, the debt costing the most in terms of interest should go to the top of the list.

At this point you have a total figure and by prioritising different debts you have milestones. If you only have one debt you can view each monthly payment you make as a milestone. It’s important to reinforce progress in this way or your motivation can suffer.

Now you have a clear picture of what you need to do it just remains to work out how you are going to do it. In order to change the situation changes must be made in how you live your life. Change is the bridge between where you are and where you want to get to.

There are two ways to get money for debt repayment; to save it and to earn it. Cutting back on what you spend will make a lot of difference. Not focusing on spending cut backs is the equivalent of drilling holes in the bottom of a boat with one hand and trying to bail water out with the other.

Take out a cash budget every week and avoid paying with your cards unless you have no other choice. Don’t purchase any clothes unless they are for essential wear, cut back to a simple grocery shop and cut out any costly social activities like bar, cinema and restaurant outings.

Check yourself as you go through each day and if you are about to spend money ask yourself if you can avoid doing so. If you can’t avoid it then aim to find a way to reduce the expense. Don’t let little purchases trip you up, a coffee here, a CD there and a magazine or two all adds up to a hefty amount over time.

The second way to get repayment funds together is to boost the amount of money you earn. Pursue overtime at work, look for a second job or start freelancing with your existing skills. Gather together a collection of possessions and have a yard sale or sell items on e bay. Consider downsizing your house or living space and selling your car.

Of course the more intensively you pursue spending less and earning more the quicker you will get out of debt. For a super speedy elimination you should leave no stone unturned. Rather than a casual odds and bobs sale you should be ruthlessly ravaging through your possessions. Look for anything and everything that can be sold, rather than picking the things you don’t mind getting rid of. Whether you arrange a sale or use e bay make sure you extensively promote your sales.

Devote yourself to working anywhere and everywhere you can; at your job, part time work and seek out every payment opportunity you can find on the internet. Arrange a monetised event and get your friends involved so you can have fun and socialise while earning rather than spending.

Eliminating debt is a case of earning more and spending less. How fast you are able to do it is just a case of how much effort and dedication you are prepared to put in. If the going gets tough just take it one milestone at a time.