During these times getting out of debt is a litttle bit easier than you think. During the recession creditors are willing to work with consumers. Now is the time to advantage of lowering monthly payments and paying down debt one bill at time. There are many ways to get out of debt.
Lower monthly payments
Lowering monthly payments can make a big difference when trying to get out of debt. The terms of the loan may be extended, but this should enable you to make bigger payments each month. Most Americans have huge monthly bills and feel stuck and deflated when trying to get out debt, but lowering payments should alleviate the feeling.
No new debt
When trying to eliminate debt it is important not to add any new debt. Many Americans when paying down a credit card or any other form of debt have a tendency to add new debt. Any extra income should be put towards paying down debt unless you need an item. It is important to have a tracking system in place so you have an idea when you will finish paying down debt.
Take a second job
Taking a second job to pay down debt is good way to speed up the process. It is important to make sure taking on the second job is used for paying down debt. If you are working long hours on top of your 9-5, the second job can cause damage to your health, which may be a bill.
Ask for overtime
If you are having trouble finding a second job which fits your schedule, ask your boss for overtime. This solution is probably easier and more conducive to getting out of debt. Working overtime may get you a promotion.
When you get a raise at your job, instead of adding new debt, you should pay down debt. When you get your raise make sure you re-evaluate your plan of action. When you get a raise make sure not to tell anyone until you have accomplished your goals.
Paying down debt
When paying down debt make sure when you pay off one bill you use the extra money to go towards the new bill. Example: Lets say you make $400 payment towards your credit card bill and you have a car note for $600. Once you have paid off the credit card bill, re-distribute your income towards paying off your car note.
During this economy paying down debt can work towards your advantage, since creditors are willing to work you. A plan of action is a step in the right direction. Don’t forget to reward yourself for your hard work. Good luck!