8 Ways To Get Out of Debt
Here are some super valuable tips that I hope these 8 ways to get out of debt will help you get out of debt 
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1. Spend less than you make. Write down your expenses. Track all the money you’re spending. Charge everything on your credit card and pay it off in full at the end of the month. That way you can track all your expenses visually. Leave your money in savings all month long instead of checking and earn a little interest why don’t cha! Set a limit on how much you are going to spend on each category of your budget.
2. Make more money! Get a second part-time job, ask for a raise, switch careers or do whatever you need to do to get out of debt FASTER. I know you don’t want to. Focus on the results or the goal, not the sacrifice.
3. Use FREE tools to help you track your budget and expenses and fast-track your way to debt freedom. My two favorite free debt management tools are Bankrate.com and Mint.com. These will guide you to success in your journey to financial freedom. Bankrate.com may also be used to shop for a better rate on your credit cards or loans. The best way to lower your credit card rates is to pay them on time. You may call the credit card companies and ask them to lower your rates. The second thin to do to really help your credit is always stay below 30% of the credit line limit. I like credit unions the best for banking. They are non-profit and much more customer service oriented.
4. Lower your bills or expenses. Trim your bills and the amount of money that you are wasting every month. Get a smaller cable package, eat out less, spend less on clothes, do not charge anything, drink coffee less often at (Six)bucks, carpool, buy less expensive cars or do whatever you need to do. Develop the mindset, “If I can’t pay cash for it, than I can’t afford it“. I don’t know, is getting out of debt worth it for you? How bad do you want to be free? Get an accountability partner. It’s a proven fact that having someone to keep you on track will increase your odds of success by at least 50-75%! That’s how all major companies and weight loss companies do it. Teamwork! T.E.A.M. stands for together everyone achieves more. Help others achieve their goals and ask them to help you achieve yours!
5. Refinance your car. Get a lower rate, a longer term or put money down and get a shorter term. The more money you free up, the more you can put to paying down higher interest debt. Try to always get a lower interest rate. Unlike a mortgage, with a car loan you might not need a down payment. Also it’s simple interest so you’ll always pay the same to principal and interest with each payment every month. Another great idea is that if you go from a higher rate to a lower one than you might be able to go to less payments for the same payment amount and save payments to pay off the vehicle.
6. Use the debt-roll-down strategy. Take money saved from the 5 things listed above and your left over cash at the end of the month and steadily pay off a debt. Then take the extra money you were paying before on that debt and ADD IT to the other money you saved and had left over. Take that and steadily pay off the next debt. When #2 debt is paid off, take the money you were paying towards it and add it to the pot again and pay it towards the next debt. As you pay off debts, the amount you have left over every month will increase. DO NOT go out and blow the money. Apply it towards the next debt in line. You will get out of debt faster and faster as this happens. Just keep focused and review your goals.
Debts-
Car $400/month
Credit Card 1 $50/month
Credit Card 2 $40/month
House $1,200/month
Loan $200/month
Left over monthly discretionary income after expenses $200
Take the $200 and eventually pay off CC1. Now you have $250 left. Take that and pay off CC2. Now you have $290 left. Take that and pay off loan. Now you have $490 left. Take that and pay off car. Now you have $890 left. Take that and pay off house. Welcome to DEBT FREEDOM! When you add all the things above to this here you will have this strategy on steroids and make it happen super fast!
7. Consolidate you debt with a Home Equity Line of Credit (HELOC). You may be able to write off the interest on your taxes. (Consult with your C.P.A.) The interest should be very low compared to loan and credit card rates too. You will also have one payment instead of many debts to pay on. Then you can also float the banks money and have debt cancellation too!
8. Get the Money Merge Account. The FASTEST way to debt freedom in combination with everything discussed here is the Money Merge Account by United First Financial. The Money Merge Account will show you mathematically the fastest way to a zero balance on all your debts, at all times. My team has helped over 1,000 families fast-track to debt freedom with this incredible membership product. Please contact me, Senior Branch Manager Jarrett Holmes with any questions you may have at 336-558-5277. I look forward to helping you and showing you your FREE ANALYSIS today! Please share your comments.
