Review Your Debts
A great way to tackle your debt is to start with the smaller bills first. The ones you can pay off in only one or two payments. For instance, if you have a department store credit card that has a balance of only a couple hundred dollars, you can try to pay that off first. That will free up the money that was devoted towards that card to be applied to larger debts. In turn, that will create the ability for you to be more aggressive paying off larger debts.
If there is a debt you do not have the resources to pay, you can try to set up a new payment schedule with your creditors. Odds are they prefer giving you more time to repay your debt to potentially receiving nothing if you are forced to file for debt discharge. So call them, explain your situation and negotiate a new repayment schedule. Then once you have paid all smaller debts as previously mentioned, you can return to putting more money towards that large debt and pay it off sooner, at the same time, avoiding additional interest fees.
Use this method with each of your debts. Once you see those balances begin to decrease, it’s amazing how you will be encouraged to continue working diligently towards your goal. Once you see progress, it makes you hungry for more because you realize that your goals are attainable.
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