What is the best way to pay off my debt? That is probably the most important question you can ask yourself if you are serious about reducing the dollar amount of your debt. The key is not in trying to do it so fast that you struggle with other finances but to develop a plan that helps you gradually and efficiently increase your financial resources.
Faster is Not Always Better
While it may seem if you pay off debt faster you will be in better financial shape, this may not necessarily be true. I made that statement to one of my co-workers who insisted I was nuts. He didn't understand why he had to take his time when he was so anxious to get out of debt. Have you ever thought about it? Yes, it sounds good, but in reality the reverse is true-at least for most people. Think of it like a diet: are you more successful when you lose weight fast or lose it slowly? The key is developing a new way of doing things, and you can't do that if you speed through the process.
How to Pay Off Debt
If you're not going to pay off debt quickly, what is your plan of attack? What you want to do is develop a plan that allows you to change the way you spend money in order to get out of debt and stay financially secure for good. Some of the things you may want to do in order to accomplish this task include:
- Minimize the number of times you eat out
- Pay more than minimum payments on credit cards when there are large purchases
- For small purchases on credit cards get into the habit of paying the bill in full every month
- Avoid buying things just because they are on sale
- Do not use your credit cards as a source of additional income: if you don't have the money in your pocket or checking account, don't buy it unless it is something essential
- Develop a specific plan for getting out of debt and stay committed to it
This gives you some tips you can use to change the way you spend money in order to pay off your debts. For more help with developing a repayment plan visit our website at Credit-Yogi .
Borrowing Money to Pay off Debt-Good Idea or Not?
Should you pay off debt with loans? That is a question that is not uncommon, but is it the right decision for you? For many people a consolidation loan solves the problem of having to make several payments to different creditors, especially if those payments involve high interest credit cards. However, if you are only going to borrow money to pay off your credit cards so you can use them again, this is probably not the right choice for you.