Three Tips How to Get out of Debt Now! Personal Finance

Have you ever tried to get out of debt? If so, this article is for you! I have some proven tips that have worked for me to get out of $5,000 of debt in three months. It is so easy to get into debt and take years to get out of debt. These are secrets the debt companies do not want you to know. I have used these tips to pay off $5,000 of debt and raise my credit score by 100 points. I also mention that I love credit cards when using them responsibly. I did not have to get another job!

Tip 1 Pay more

Pay more than the monthly minimum payment due on your debt. This tip will work for any budget. Paying more than the monthly minimum payment will help decrease the debt balance. Gradually, pay more money each month. Make sure to pay any extra amount before the due date on the bill.

A lower balance can also mean a lower monthly payment, but not always. Paying more than the monthly minimum payment is one of the fastest ways to pay off the debt. Pay any extra amount monthly on principal-only payments if allowed by the company. Paying principal-only payments will help lower the debt balance quickly. 

Tip 2 Reveiw the statement

When you review the billing statement, look for the statement closing date. If you do not see the statement’s closing date, the company can provide it to you. The statement closing date lets you know when the company will report the debt balance to the credit reporting agencies. Review the billing statement and look for the annual percentage rate (APR) and the balance subject to interest rate. The APR and the subject-to-interest rate calculate the interest charge.

Tip 3 Pay on time

Pay all your bills on time. Paying your debt bills reported to the credit reporting agencies is very important. Missing only one payment can cause your debt balance to increase, you may have to pay a late payment fee, and your credit score will have a late payment. The late payment can stay on your credit report for years. 

Summary Personal Finance

Pay more than the minimum monthly payment. Pay principal-only payments on the debt. Review the billing statement for important information about the interest charges. Pay all your bills on time. By applying these tips, you can see a lower debt balance and be on your way to becoming debt-free.