1. Get an overview of all your debt
There are many reasons that people get problems with debt, but getting an overview of all your debt is super important. It is actually the key to ending all your debt problems. For most people, this is probably one of the hardest things to do, not because its difficult to do the job. Emotionally this can be a reality check, but it is important to face the problems. Understand what you used the money on and how you can change the pattern.
2. Make a spreadsheet or use our super spreadsheet
A spreadsheet is a fantastic tool for you to get an overview of your debt. You can use our free spreadsheet here. All you have to to is fill in all the creditors you owe money to and their interest rate.
3. How can a priority list help me?
Our priority list is made on the concept “pay less and faster”. If you have personal loans or even credit card debt with different interest. The best way to get out of debt faster is to pay off the most expensive debt first. You will still have to pay the minimum installments on the other debt, but the extra money in your budget should go to the most expensive loans.
4. Bargain on your debt
When you have the list of all your creditors and exact what the loans will cost you. You have the overview and the advantage. If some of your debt is a few years old and the interest that is charged on these loans are very high. Call the creditor and tell them a little bit about your situation. Tell them that you want to pay off your debt faster and if they can consider a lower interest for a certain period until you have paid their money back. Very many people that we talk to – with debt problems are afraid to talk to their creditors. There is no reason to be afraid, they are humans like you and me. They don’t want to do you bad, they only want you to pay back your loan.
5. Talk to creditors about reducing or pausing installments for a period
This might seem like a weird, though but think back on what we wrote about the priority list. In order to pay off your debt fast and cheap, you will need to prioritize. The smart thing here is to try to explain to your creditors that you want to pay back all your debt, but in order to do that most efficiently, you need to prioritize. Many creditors will not allow this, but some will and that can help you and your situation quite a lot.
6. Control your spending and make a budget – do not loan more!
Getting control over your debt is important and making a viable plan on how to pay down your debt is really important. The most important thing here is to make a change – change your pattern and not make the same mistakes. You need a budget, you can find a free budget for yourself here and read how you make a budget here. Many people that have personal loans, credit card debt or another kind of expensive debt seems to get in trouble more than one time. Cut your credit cards, do not loan more. You need to change your focus from spending money to saving money!
We know that you can do this – pay down your debt and start saving money. It probably sounds a bit silly – but its actually all in your head. If you set your mind to pay down debt, minimizing your spending, taking control and not make impulsive decisions. You can pay down your debt super fast! We have all the tools you need to make this a life changing success.
