Contact usThe Opportunity to Grow

How You Can Get Out of Debt

To get out of debt, one must create a plan and execute it. It is because of this reason that this article is created. The ways that credit is paid back have gradually changed over the years, and this one is designed for debt that you still haven’t paid these days. As you are working on your plan, you need to make some adjustments to your budget so that you do not overspend and go back into creating more debt. You also need to set aside some money aside into savings beforehand if you do not have any emergency funds.

The best way to be debt-free

Many people with a huge debt want to make this right. You need to make sure that you know where you stand right now before you begin the plan. You need to have in your mind the complete picture so that it will be easy for you to keep track and follow your plan.


Create a List

The key factor to success of getting out of debt is by have everything written out. Also, once you have everything written, it will not be as surmountable as it was before.

  • List all the debts and its corresponding information: the name of the creditor, minimum monthly payment, balance, interest rate.
  • You also need to list down how much you need to pay so as to zero-out the debt of your card within the span of 3 years, as what is stated in statements of your credit cards.
  • You also have to include the loans that are not listed on the credit reports such as medical bills, family loans, etc.


Lower the Rates

Paying up the high-interest rates on your existing debt can cause the debt to mount up. Thus it makes it difficult to pay back. If it is possible for you, you have to lower the interest rates. Here is what you need to do:

  • Based on the credit you possess, you might qualify for much better interest rates on the credit cards.
  • Open up a free account at and take a look at the kind of low rate you get on the balance transfer with credit cards.
  • Check the Income-based Repayment and student loan consolidation at
  • Call the card issuers and seek whether you can lower the rates on the balances of your credit card.
  • Consider balance transfers or consolidation loan to pay off the high rate credit cards. This will lower the rate.
  • Try to find out if you are able to refinance on a high rate on auto loan.


Get the Number

As this point, you will have a clearer picture on how much you are going to pay for the credit every month.


Plan the Strategy

There are various ways you can save this problem, and you will highly likely approach this using different methods and tools. Make sure you plan your strategy carefully. If a monthly payment is not possible, try contacting a credit counseling agency or the bankruptcy attorney for any advice.


Monitor and Adjust

Once you already have your plan set up, do not get too comfortable. You have to keep track of your behavior as close as you can to ensure that you are making progress and you also want to make some adjustments whenever necessary. When your credit score shows progress, try to consider getting balance transfers or consolidation loans again to save money from time to time being spent on the interest charge for the remaining debts.

Never sway from your plan in paying off your debt.

Add a Comment

Your email address will not be published. Required fields are marked *