If you have multiple debt sources, start by paying of the highest interest rate debts first, or by paying off the smallest balance first. After you pay one debt off, you apply that amount to the next debt-it's the snowball effect!
Get a second job (temporarily) or work more hours at your current job to create extra income to pay off your debts.
Cut your living expenses, eliminate luxury items, and live frugally to create extra income to pay off debts.
Delay purchases on items that aren't immediate needs.
Automate debt payments to ensure that you are paying off your debts consistently. Enrolling in automatic payments can be scary at first, but you'll soon learn the convenience of it is worthy every penny paid down.
Involve others in helping you stay motivated and accountable in your debt-reduction goals.
Consider negotiating with your creditors to settle your debts.
2) Avoid any further unnecessary debts. However, do invest in the following types of funds
Spending debts for just your needs.
Don't buy on credit, instead save up for bigger purchases.
Avoid impulse spending like clothing, gadgets, travel, restaurants, etc.
1) Limit your credit cards to only 2 or 3.
2) Pay with cash or debit cards.
3) Avoid payday and short-term loans to avoid paying high interest rates.
4) Buy a car that is within your means.
5) Live in a home or apartment with a mortgage or rent payment that is well within your means.
Investment debts for your home mortgages, student loans or business loans.
What's your financial age?
2) Make a written budget.
3) Minimize or eliminate expenses
Student Loan Debt
"Even if you were to fall into extreme financial hardship and file for bankruptcy, you need to understand that your student loan debt will not be discharged in bankruptcy. It is the Velcro of all debts."
-Suze Orman, Personal Financial Guru
"You must gain control over your money or the lack of it will forever control you."
-Dave Ramsey, Financial Author
The Dangers of Debt Interest
"Interest never sleeps nor sickens nor dies; it never goes to the hospital; it works on Sundays and holidays; it never takes a vacation...it has no love, no sympathy; it is hard and soulless as a granite cliff. Once in debt, interest is your companion every minute of the day and night; you cannot shun it or slip away from it; you cannot dismiss it; it yields neither to entreaties, demands, or orders; and whenever you get in its way or cross its course or fail to meet its demands, it crushes you."
-J. Reuben Clark, U.S. Ambassador
Needs and Wants
"We buy things we don't need with money we don't have to impress people we don't like."
-Dave Ramsey, Financial Author
"If money management isn't something you enjoy, consider my perspective. I look at managing my money as if it were a part-time job. The time you spend monitoring your finances will pay off. You can make real money by cutting expenses and earning more interest on savings and investments. I'd challenge you to find a part-time job where you could potentially earn as much money for just an hour or two of your time."
-Laura D. Adams, Financial Expert
The Importance of Education
"I am concerned that too many people are focused too much on money and not on their greatest wealth, which is their education."
-Robert Kiyosaki, Financial Author
"An investment in knowledge pays the best interest."
5) Save for purchases and tough times
6) Invest your money
You're on your way to financial peace.
Fully recover your personal peace
Today you reclaim what's yours.