Debt is the most common roadblock that is preventing people to keep a track of their finances. More than 80 % of Americans have some kind of debt preventing them from investing or saving money and enjoying themselves. If you are one of those people struggling to find a way how to get out of debt, you need to keep in mind that no miracles happen overnight and that it is sometimes necessary to take small baby steps to overcome difficulties in life. Becoming a debt-free harder way is sometimes the only way to get out of debt. If you have run out of ideas how to get out of this stressful situation, don’t worry because we have rounded up a few easy steps that will help you get on a path of financial freedom.

Find out how much debt you have

Even though this may sound like irrelevant information, you won’t believe how many people, especially Americans aren’t even aware of how much debt they actually have. This usually happens because people avoid facing the reality and choose to bury their head in the sand rather than deal with the problem. However, this kind of behavior won’t get you anywhere. Instead of ignoring the situation you are in, contact the bank and ask them to help you find a reasonable solution to the problem. Ask them for the amount of debt you owe and the monthly minimum payment on the card. You can even consider using this tool to keep track of your finances and debts.


Create a realistic budget and stick to it

One of the requirements of getting out of the debt is being realistic about how much you can spend on a monthly basis. Creating the budget that tracks your income and your expenses are crucial to getting out of debt. It will give you a preview of both your deficit and your surplus and help you take care of your finances in the long run. The goal is to increase your surplus and pay the money that you owe. You can do this by being creative and asking for a pay rise or by finding a new additional job.


Try the debt snowball method

If you are willing to pay off more than minimum monthly payments on your credit cards, consider using a debt snowball method. This will allow you to speed up the process, and reach your goal. The first and the most important step is to list all the debts you have from the lowest to the largest ones. Next, start paying off small balances, while making the minimum payments for larger loans. Over time, by paying off your smaller balances, you will free up money for larger loans. The ultimate goal is to snowball all your extra dollars towards your debts until they are demolished making you debt-free. Essentially, snowball method enables you to save the largest loans for last.


Negotiate lower interest rates

Not many people are aware of the possibility to lower your interest rate only by making a phone call. Simply, call your bank and ask them to lower your credit card interest rate. In most cases, bank officer will refuse to give any offer. But if you explain that you are going to start paying off your debt more aggressively from the following month and that other cards are offering rates at half what your bank is offering, they might start considering pulling something up. They may offer you a reduced APR. This is undoubtedly effective solution because it can help you save over $1000in interest, and when you are trying to get rid of your debt, any dollar counts.


Get a seasonal part-time job

One of the ways you can overcome debt difficulties and free yourself from the additional stressed caused by the lack of money is simply to find another part-time job. This can be a job you will be doing around the whole year or just a seasonal job that will give you just the right amount of money to handle your debts. Even outside of the holiday, there are plenty of seasonal jobs available. For instance, while springtime brings the need for seasonal greenhouse workers, summer calls for tour operators, lifeguards, and landscapers. Regardless of what season it is, there is surely a part-time job that will suit your skills and interests and that will provide you with reasonable steady income.



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