There are a number of ways to get out of debt, including getting professional help from a reputable credit counseling non-profit. Remember - you didn’t get into debt overnight and you won’t get out of debt quickly. You need to develop and follow a plan. There are a some additional options in our tips below. Here is one way:
- List all of your debt balances, interest rates, and minimum payments from the highest interest rate to lowest
- Pay extra on the highest rate loan and the minimum payment on the others
- When one loan is paid off, put the payment for that loan to the next highest loan, and so on, until all debt is paid
This, of course, only works if you do not add new debt.
A balanced budget and careful tracking will help during this process. Be prepared to make tough choices about spending, or reduced spending, during this time.