Australian
Internet Loans
Australian Credit Representative 401491
Australian Internet Loans :: Articles
SHARE

Share this article!

5 simple tips for reducing your debt faster

5 simple tips for reducing your debt faster

Losing sleep from too much debt? Learn how to pay off your credit card bills faster!

Are you one of the many Americans with too much credit card debt?  Don’t feel bad.  You’re definitely not alone!

 

There are worse things in life than debt.  But when you’re dealing with the stress of financial problems, and losing sleep, it is important to find a way to reduce the burden as quickly as possible.

 

Even if you’re struggling with financial problems, you need to keep it in perspective.  Because YOU have the power – no matter how bad things seem right now – to take control of your finances, and start knocking off your debt one dollar at a time!

 

But how can you do it when money is really tight?  And the bill collectors are calling (or will be very soon)!

 

No matter how much or how little debt you have, there are ways to get yourself back on track financially.  Getting out of debt is not a race.  And there are no secrets.  It’s a process.  And if it’s taken you several years to accumulate your debt, you won’t get out of debt overnight.  But you can take action today and start making changes right away – changes that will get you on the right path, and make your future a lot brighter financially!

 

Each change you make – even if it only saves you a few dollars at the start – will start yielding bigger results over time (and give you peace of mind every night when you go to bed!)

 

That’s the power of compounding.  Unfortunately, when you have too much debt that compounding works against you, and works in the banks favor.  Now it’s time to reverse that trend.

 

So if you’re losing sleep over credit card debt, start following these 5 simple tips right away!

 

1) Write a list of all your credit cards, with the amounts you owe, interest rates, and monthly payments for each of them.  You can’t develop a plan to get out of debt until you know exactly where you stand – even if it is a little painful.  Pretending your financial problems are not that bad is a mistake.  Knowing exactly how bad they really are is crucial!

 

2) Remove all but one credit card from your wallet or purse.  When you have credit cards with you when you’re driving around or walking through the mall, it’s easy to use them, and spend money you just don’t have.  So, pick one that you can use for emergencies.  And remove all the rest - stick them in an envelope, then seal the envelope and put it in your dresser in a place you won’t see all the time.  The less you see the cards, the less likely you are to use them!

 

3) Next, grab your most recent credit card statements and call all the creditors.  Ask to speak with someone who can help you lower your interest rates or lower your monthly payments.  Often, this one simple step can lower your interest rates 5-10% - and help you get out debt faster by paying off your balance quicker.  If the first person you speak with says they can’t help you, POLITELY ask for a supervisor.  And ask them for help.  If they can’t help, thank them and wait a few weeks and call again.

 

4) Take your list from the first step and make a goal to pay off the card with the smallest balance first.  Take as much extra money you can afford each month and add it to the minimum payment amount – even if it’s only $5 or $10 bucks!  Some financial “experts” will tell you to pay off the one with the highest interest rate first.  But you’ll see quicker results starting with the smallest balance, and get the motivation to keep going!  Then once that first card is paid off, take the money you used from paying it off, add it to the second card, and pay of that one.  Keep going until all the cards are paid off completely!

 

5) Once all your credit card bills are paid off, take the money you were using and open a savings or money market account, and put ALL the money you were using into the account each month.  Then you can use this account instead of your credit cards to pay for the things you need to buy!

 

And don’t forget - when it’s time for bed, think of something fun or positive you did that day (force yourself to think of something other than debt, money, and work) and before long you’ll be sound asleep!

 

You won’t get out of debt overnight.  But you can take small steps that you will pay off BIG over time.  You’ll be surprised how quickly you start making progress paying off your debts, and start sleeping better!

 

Published:Thursday, 15th Jan 2009
Author: 137

Share this article:


Finance News

Australia Gears Up for Comprehensive Financial System Resilience Assessment in 2025 Australia Gears Up for Comprehensive Financial System Resilience Assessment in 2025
27 Mar 2024: .Paige Estritori

The Australian Prudential Regulation Authority (APRA) is positioning itself to inaugurate a widescale diagnostic of the nation's financial heartbeat in the year 2025. This financial health check aims to meticulously analyze the repercussions of unanticipated events on the country's financial stability beyond merely scrutinizing the banking sector. - read more
Climbing Mortgage Arrears Signal Heightened Financial Strain Climbing Mortgage Arrears Signal Heightened Financial Strain
26 Mar 2024: .Paige Estritori

Australian households are navigating a more complex financial landscape as mortgage arrears have climbed to a peak not seen since the outset of the COVID-19 pandemic, according to a new report from Fitch Ratings. The Fitch's Dinkum RMBS index has indicated that, as of the last quarter of 2023, households are falling behind on mortgage payments more frequently, sparking concerns about financial resiliency amid ever-tightening economic conditions. - read more
New Investment Approach for Australian New Homebuyers New Investment Approach for Australian New Homebuyers
25 Mar 2024: .Paige Estritori

Recent statistics have highlighted a notable shift in the strategies Australian first-time homebuyers are using to infiltrate the challenging property market. Analysis of 2023's purchasing trends indicates an emerging investor mentality among new buyers. - read more

Finance Articles

Online Personal Loans: How to Protect Your Information and Avoid Scams Online Personal Loans: How to Protect Your Information and Avoid Scams
In recent times, Australians have witnessed a notable uptick in the use of online personal loans. The trend emerges as part of a broader digital transformation, where convenience and speed take precedence. This shift has facilitated access to financial services with just a few clicks, making personal loans available to anyone with an internet connection. - read more
5 Smart Debt Consolidation Moves for a Financially Savvy Future 5 Smart Debt Consolidation Moves for a Financially Savvy Future
The landscape of personal finance is continuously evolving, and in Australia, this includes the manner in which debt is managed. In recent times, an increasing number of Australians have found themselves navigating the complex maze of personal debt, from credit cards to student loans, and grappling with the impact this has on their financial well-being. - read more
5 Key Steps to Take Before Applying for an Online Loan 5 Key Steps to Take Before Applying for an Online Loan
Applying for an online loan can be a convenient way to manage your finances from the comfort of your own home. With technology's advancement, borrowing money has shifted from traditional brick-and-mortar institutions to digital platforms, making the process quicker and more accessible. However, navigating through this online landscape requires an understanding of how it operates. - read more