Almost everyone has debt in some form or another, but if you are one of the people with excessive amounts of credit card bills, you are probably feeling the weight pulling you down. You don’t have to feel that way though. Getting out of debt is a long process in most cases, but ultimately, it will be worth it in the end. There are a lot of different ways to handle your financial situation, but here are a few simple ways that Dave Ramsey recommends if you are working to get out of debt.
Put one foot in front of the other
One way you can work on getting out of debt is through trying to just take one step at a time. If you can afford it, make an extra payment once every few months or pay a little more every month to reduce the number of total payments. One example might be paying $400 a month on a car payment instead of $375 or paying one extra house payment every year to reduce your mortgage by 4 years. Just doing a little extra when you can goes a long way, even if it doesn’t seem like much to you at the time.
Consolidate all your debt
Debt consolidation is a really popular method for paying off your credit card bills because it allows you to have one payment every month instead of focusing on multiple payments for multiple lines of credit. Oftentimes, you can also get a lower interest rate on the loan than you had on the debt, giving you smaller payments and making it so you owe less money in the end.
Start with the most expensive debt
Every time you finish paying off a credit card bill, you’ll feel accomplishment, which will give you the drive to focus on another piece of debt. There are a couple of ways to do this. In some instances, you may want to start with your smaller bills and pay off that one first, so you can feel the high of paying off debt and get the urge to pay off more. In other instances, it makes more sense to start with the most expensive debt, or the debt with the highest interest rate. If you follow this route, you’ll end up paying less money over time.
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