3 Tips to Get Out of Debt

It might seem that debt is a way of life for some of us but it doesn’t have to be that way.

In particular, if you have credit card debt that is spiralling out of control, it’s time to stop and consider a plan of action.

There are a number of goals that this can end up hurting. It could involve your retirement plans, credit score or even buying a home for yourself or even taking that vacation you always wanted.

Here are 3 tips to get out of debt once and for all:

 1: Speak with your issuer

Probably the simplest way by which you can lower your debt is by asking your issuer if you qualify for a lower rate. This applies especially if your credit score is better now than before. Or if you’ve enjoyed a good history with your issuer. Don’t expect the first representative that you talk to to agree but it’s definitely worth trying.

2: Pay Off the Smallest Balance First

Known as the ‘snowball method’, you can use the extra cash that you make to pay off the smallest balances first. Also, this will keep you motivated since you can tick off the debts off your list faster than usual. So, for starters, ensure you make that list and begin taking them off, one by one, off your list.

3: Make a Big Payment

This method is especially useful if you get an unexpected windfall or even an inheritance. What you do with this method is throw a sizeable sum of money at a debt. If this can help you get out of a regular payment, then there’s nothing like it. While you might feel the pinch, it will definitely smooth over your budget and free up money that you can either save or put to paying other debts.