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The best way to get out of debt and start saving money is by following three important steps:
1) List your debts from highest to lowest interest rates.
2) Determine how much you can afford to pay towards your debts each month and list that amount below the corresponding debt.
3) Pay more than what is listed if you can afford it, but never pay less than that amount. Once the account starts paying down any of the higher interest accounts, you should add what was being paid to these accounts into your list and then continue paying as much as possible on them until they are all paid off.
This may seem easy to do now, but when you are actually in debt, it can be extremely difficult to buckle down and start saving money.
To get out of debt:
These steps should also be followed if you have an unpaid credit card. Set up a payment plan with your credit card company. Most banks are willing to work with you if you call them and explain your situation. If they don't make this offer, it is probably better not to use that card anymore until you have a plan in place and can stick with it.
1) List your debts from highest to lowest interest rates.
2) Determine how much you can afford to pay towards your debts each month and list that amount below the corresponding debt.
3) Pay more than what is listed if you can afford it, but never pay less than that amount. Once the account starts paying down any of the higher interest accounts, you should add what was being paid to these accounts into your list and then continue paying as much as possible on them until they are all paid off.
This may seem easy to do now, but when you are actually in debt, it can be extremely difficult to buckle down and start saving money.
To get out of debt:
These steps should also be followed if you have an unpaid credit card. Set up a payment plan with your credit card company. Most banks are willing to work with you if you call them and explain your situation. If they don't make this offer, it is probably better not to use that card anymore until you have a plan in place and can stick with it.
