How to eliminate debt? – A questions that is asked by a number of individuals around the globe. These are the individuals who somehow (mostly due to uncontrolled spending) landed into the mouth of this monster called ‘Debt’. So what are the ways to eliminate debt?
If you are looking to debt, you have already reached 50% of your goal because your decision to eliminate debt is the first and the most important step towards you being able to eliminate debt. Having said that, it is important to mention that you also need to be firm on this decision and stick to it with complete sincerity and seriousness, till you finally eliminate all your debt (and even after that).
To eliminate debt, you need planning. This starts with analysis of current situation in terms of your debt and your finances (current and as expected in near future). So to eliminate debt, you need to first check the amount you owe. You can do this by getting annual credit report on this site or by staring a free trial with this site. Once you have this information handy, you can total up the various amounts to get the total amount of your debt. After all, you can’t eliminate debt if you don’t know how much it is actually. The next thing is to see if you have enough cash handy e.g. in your various bank accounts, which you can put to use to eliminate debt (of course, you will need to take a view on how much cash you will need to fulfil your day to day and specific future needs). If you find that you have enough to eliminate debt completely, just go ahead and eliminate the debt and earn your peace of mind. However, if you can’t eliminate debt completely, check the amount that you can use to eliminate debt partially. Next step, as you must have guessed, is to check how best you can use this amount to eliminate debt (even if partially) i.e. which portion of debt should you eliminate first. So, first eliminate debt with the highest interest rate or APR and which is hitting you the most.
What we have seen is just some basic analysis and first steps on how to eliminate credit card debt. You might need to take some other steps to eliminate debt e.g. consolidation of your debt is one good option. However, it’s imperative to understand that any and all methods to eliminate credit card debt will fail if you don’t inculcate controlled spending habits.