9 Tips For Clearing Your Debt

1. Sell old stuff

A great and simple way to accumulate a bit of spare cash is to get rid of unused belongings. Gather all of those old and dusty lawnmowers, ornaments, and any other junk lying around to pawn at a garage sale. This is just one of the ways to sell old items. For items that fetch a higher price, there are websites such as Craigslist and eBay that make it really easy to sell stuff to a wide demographic.


2. Be frugal & save

You will be amazed at how much you are able to save when you decide to walk or ride a bicycle instead of driving those shorter journeys and take your own bags to the grocery store. By keeping up with these tiny acts of frugality, you will trim off the fat from your savings and be able to sustain the frugal lifestyle much longer than most people.


3. Play your interest rates

Many of the credit cards you own will have interest rates that varies depending on your financial institution. In order to save yourself more money, you should focus on paying off those debts with the highest interest rates first. Paying off the amounts you owe that accumulate the most interest means you will spend much less on inflated interest rates. Pay back the minimum amount on your cards with low interest rates and invest more towards cards with higher interest rates.


4. Know your debt

If you happen to be in debt, it’s important that you are always aware of how much you still owe. Check your online bills using a calculator, adding up all of the fees. Consider the interest rates which may vary and calculate yourself a total of exactly how much you owe. This provides a goal for you to aim towards and consolidate your debt into an easy to understand figure.


5. Get rid of plastic

One of the primary reasons you may be in debt in the first place is due to credit cards. They may have been essential at the time but have since nudged you into this debt and using them will not help you get out of it. Cut up your cards and don’t use any of them. Stick with debit cards, so you’re only spending the money that you have and not exposing yourself to potential risk.


6. Keep a spending journal

Just as knowing the total amount owed, you also need to know how much you spend. Keep a detailed log of the amount you spend on a monthly basis. This will help you calculate the length of time you will be in debt for, which is a good reference you can utilize to create a solid plan and get rid of credit card debt.


7. Open a Savings Account

It might seem absurd to if you’re in debt to consider about opening a savings account when you could otherwise be using it to pay off debts, but it can provide benefit. If you don’t have any savings at all, what will happen when unexpected expenses creep up on you? You will have to resort to using credit cards once again, landing you right back into a ditch. On the bright side, once you have eliminated all your debt, it’s always nice to be able to fall back on a financial cushion.


8. Increase your income

It may sounder harder than it seems but earning more money is the essential factor in getting you out of debt. Whether it comes down to taking up another job during the weekends, babysitting, Christmas temping, inputting data, or mowing some lawns, every little bit helps if it contributes to softening your debt. Apply these tips to your credit card debts and you’ll notice the difference.


9. Know when to seek help

It’s imperative that you know you’re not on your own and the world isn’t picking on you when you’re in debt. There are millions of people that are also in the same boat just like you, and there are plenty of counseling services with credit advisers specialized to help people like you. The BBB (Better Business Bureau) and your states’ licensing department will assist you with your budget and create a plan for you without charge. There is absolutely no shame in taking advantage of these opportunities and the benefits will be worth it.

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