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Editor’s Note: This is a guest article by Tom Tessin from FindSecuredCards Getting out of debt isn’t the hardest thing to do and as long as you have motivation and you don’t fall for stupid and silly traps, you will be just fine. What you’re going to find out when you’re trying to get out of debt is that you’re going to be desperate. This isn’t the path you want to take. Instead, you will want to sit back, take a deep breath, and relax. Let me show you 8 legitimate steps that you can take in order to get out of debt.
#1 Start working with the credit card companies – When I say this, I don’t literally mean work for them, but rather call them up, and ask them to cut your interest rate down. Even if they cut it down by 1%, this can save you hundreds, if not thousands. A simple phone call can save you, trust me.
#2 Get on a budget – If you don’t know where your money is going month to month, I want you to start a budget right now. What you’re going to want to do is write down every bill that you’re paying on a monthly basis. Whatever you have left over at the end of the month, put it toward debt!
#3 Cut back on things – You don’t need Starbucks, you don’t need 800 cable channels, and you don’t need a gardener to pick your weeds. Do you get my point here? Get rid of the luxuries that you can’t afford. This isn’t about image anymore.
#4 It’s garage sale time – If you’re going to get rid of debt, you need money. One of the easiest ways to make some side cash is by selling things on eBay, as well as a garage sale. Post an ad and see what kind of response that you can get. Promise yourself that you’re going to put all of that money toward your debts.
#5 Get non-profit help – If you’re going to get help, go with a non-profit company. Sure, you can find these companies online, but you can also find them at your local church, and some organizations. Check with the BBB to ensure that they do mean business. These companies can help you tremendously.
#6 Negotiate your bills – Credit card companies will negotiate with you when it comes to your bill. The only way they will do this sometimes is when you have a lump sum of cash. For example, if you have a $6,000 bill, they may settle for $3,800 in cash. If you’re going to go this route, make sure that you get everything in writing!
#7 Money = Getting rid of debt – There isn’t any magical formula, there isn’t a tree out there, nor is there a book online that’s going to give you money. You have to go out there and earn it on your own. I don’t care how you make it (I hope it’s legally). Working hard is going to get rid of your debts. You just want to keep this in the back of your mind.
As you can see, there isn’t much you don’t already know. You want to make sure that you put a carrot at the end of your stick. What are your goals? How will you feel? What will it be like when you have a positive net worth, rather than a negative? Get out there, fight that debt, and let me know how you did, and how you feel!
Tom runs FindSecuredCards, a company helping those in debt find bad credit cards. You can also catch more of his work on his blog over there as well!