Best ways to get out of debt
As a consumer, one of the best ways to get out of debt is having a clear plan and a set goal for living debt-free. There are of course other ways of making this much easier and faster too.
If your focus is on a positive relationship with money, there will be less time spent on debt accumulation.
Deciding which debt gets first priority should ideally be the first step, as it gives a better idea of where to start. There will be more clarity on debt obligations and which creditor has the highest interest to pay.
A solid plan for getting rid of debt is required. If you’re more focused on paying debts with higher interest rates off, this could hasten things.
Negotiate with creditors for a lower interest amount. If you have a good record of timeous payments without fail, you may have a better chance.
The idea of simple living can scare many people off, but the idea offers a great alternative. Living frugally means that you focus specifically on needs that you may have. Reckless spending is avoided in this way.
Denise is interested in finding more ways to get out of debt:
By not eating out every night she can save significantly. Starting a stable business and using the additional income for paying all of her debts off is a positive step. She should also work towards avoiding an accumulation of more debt. By committing to using only cash when paying for goods or services she could avoid a heavy dependence on credit cards. If she does have this line of credit she can use a balance transfer card to lower the interest she is paying.
As long as Denise is serious about living debt-free she will be consistent about how financial behaviour.