Before you reach out to a credit card
debt elimination service for help with your debts, there are a number of actions that
you can take on your own to begin the process of debt
elimination.
First, you need to stop spending money on anything that is not
a necessity, and if you think that eating out or going for happy
hour is a necessity, you are not going to succeed at this. Necessities
are housing, food, clothing, transportation, etc... Decide that,
until you are back on track, nothing will be spent unless it
is on a necessity.
You are now going to take the following steps:
- Make a list of all of your revolving unsecured
debt -
this includes charge cards, car loans, personal loans, anything
you have purchased on which you are making monthly payments.
- Beside each item, list the total amount owed and then
the minimum monthly payment required.
- Divide the total owed on each item by the minimum payment.
This will give you a "monthly" total to pay it
off. (This is not the actual number of months).
- Find the debt that has the smallest number of months.
This is number 1. The next smallest number of months becomes
number "2," and
so on. You now know the order in which you are going to pay
these debts off.
- Pay as much money as you possibly can on #1, paying the
minimum on all others. As soon as #1 is paid off, take all
of that monthly payment and plunk it on #2. Proceed this
way until your debt is down to a reasonable amount, i.e.,
an amount that is not creating stress and anxiety.
For some people, this can take a few years. Promise yourself
to stick with it. You do not want to spend the rest of your
life stressing out and avoiding creditors' calls. A credit
card debt elimination service can be a valuable source
of debt help.
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