Debt plagues millions of people the world over. While debt can sometimes be brought on by unforeseen circumstances or necessary purchases like a home or car, a lot of debt is there simply because there’s been a lack on control when it comes to spending. And if this is the case for you, it’s completely within your control to get your finances back on track and start eliminating the debt that’s weighing you down. To help with this, here are three simple ways you can quickly minimize your debt.
Stop Building More Debt
The first thing you should do if you’re trying to pay off your debt is stop yourself from creating more debt. Even if you’re paying off a bigger chunk than you’re adding to your overall debt, this is still going to set you back and isn’t addressing the bigger issue of why you have so much debt. Knowing this, Latoya Irby, a contributor to The Balance, recommends that you either cut up or put a freeze on your credit cards so that you can no longer use them. While you should still keep those lines of credit open for your overall credit score, you should stop using credit to make any more purchases.
Create A Holistic Budget
The next thing you should do to start paying down your debt is set aside money to put toward those balances. To do this, you’re first going to have to know exactly how much money you’re bringing home each week or month and how much money you’re having to spend on fixed expenses like housing, utilities, and food. Any money that’s left over from your budget should go toward paying off your debts. According to David Bakke, a contributor to U.S. News and World Report, you should look for areas where you can cut back your costs so that you can pay off a bigger piece of your debt each month as well.
Try To Negotiate
Another thing you can try that will help you reduce the amount of money that you owe to your creditors is to negotiate down your debt. According to Kali Geldis, a contributor to Credit.com, many creditors are willing to negotiate with you in either your total balance or through payment plans with little to no interest if you can show that you’re willing to pay off the debts that you can. These people or businesses would much rather get their money back from you rather than having you file for bankruptcy and losing out on all that they’ve lent, so you might find your creditors to be much more lenient than you’d imagine before you speak with them.
If you’re ready to get out from under all your crushing debt, consider using the tips mentioned above to help you do just that.