How To Clear Debt in Five Steps

To be young and debt free! These days, young people are already chained to credit card debts and by the time they graduate from college, they will slave to pay off their debts. This early they are learning there’s a way to debt relief.

Maybe you aren't even young and have accumulated a lot of debt. There is a solution but it isn't going ot be easy. It will take determination and sacrifices to get to the life you are dreaming of attaining.

Do you know how to play your marbles? If you are still in college, don’t wait until after graduation to clear debt. It’s a pipe dream. Statistics show an alarming rise in the number of college graduates already saddled with debt, even before they can find jobs.

Staying debt free while in college can be done, but it is not easy. start living on a budget and stick to it until graduation day. By the time you are on your own and have a job, keeping to the budget will become a force of habit. If you are already riddled with debt, take the following how to pay off debt tips to heart.

First Step

You cannot hide forever from your ghastly credit scores. Check your credit score and credit record. There may be some errors. Lending institutions make mistakes too. There might be a record of a double payment. Seize it and have it corrected. Corrected errors can boost your FICO scores.

Second Step

Know how much you owe on your credit cards and from your family and friends. Make a realistic list of your living expenses. Sort your debts according to the balance amount. The larger the balance the faster you should eliminate it. But it is much safer and realistic to pay off easier debts than hurdle those gigantic debts when you know better.

Third Step

Plan your spending and repayment budget. Don’t stint. Cross out the items you can live without but do have some money set aside each payday for emergencies. Reduce your utility bills. Switch to lower wattage lamps, fix leaking taps, and avoid the tub, and take showers instead, to lower your monthly water bill. You might be dumbfounded to discover you can live on less electricity and water.

This is just one area to save, there is a variety of ways you can begin to scale back your cost of living. But that's why you are here in the first place right?

Fourth Step

If you delay paying, you will be paying more than you should, and get caught in snowball debt. Oh and the late fees will kill you, so pay on time! Think of the money you can save when you pay off those huge balances instead of crying over that luxuries you have to give up.

Once the balance on the credit card is paid up, close the account and cut up the card. You won’t miss it at all if you have other credit cards on the debts-to-pay pile. Close each account as you go but keep the card with the lowest APR for emergencies.

Fifth Step

Keep on paying on your credit cards and other items to clear debt as soon as possible. It can be a pain during this time when prices have gone up. If the rent has increased, relocate to cheaper lodgings, or consider having roommates to help with expenses. You can use the extra on food or sacrifice the money to pay your debts.

If you can commute to school or work daily, don’t use your car and save the gas for more important outings. Try walking, biking, or riding a bus or subway. If your car is paid up, sell it. Car upkeep can drain your reserves.

If everything else fails, see a credit counselor to help you get clear debt relief so you can be debt free in a reasonable time.