The Cheat’s Guide To Clearing Your Debts

Debt is easy enough to get into. A few dollars here on that credit card, a few dollars there. A missed payment one week turns into months of hiding from the knock at the door and ignoring the calls on your cell phone.

Debt, sadly, is not quite as easy to get out of. Many people choose to bury their heads in the sand – it is scary, and they have no idea how to dig their way out of the financial hole that they have found themselves in.

However, what if we told you that actually, there are some ways that can make getting out of debt a little bit easier? What if we had a cheat’s guide to clearing your debt?

Let’s take a look at how you can start finding your way on the path to being debt-free

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Get advice from people who have been there and know the system

Unfortunately, the financial and banking system is set up to fail the average citizen, knowing that once they get caught up in the web of debt it is so much more difficult to escape. However, there are organizations set up to help you – and it is important to remember that the Debt to Success System is no scam.   Places like this exist to help you, so make the most of it and take their advice and support.

Pay off your smallest debts first

This way of paying off debt is otherwise known as the snowball method. With this, it is important to remember that you MUST pay the minimum payments on ALL of your debts. You then use any remaining money to pay off your smaller debts as quickly as possible, hence the term ‘snowball’. The idea behind this one is that you start clearing your debts, which is great for your credit record and seeing them disappear one by one is an excellent motivational tool.

Pay off the debts with the most interest first

But, hang on, didn’t we just say pay off the smaller ones first? 

Well, if you are looking for short-term gains and results, the snowball method as described above is the ideal way to go about it. However,  for people who want to spend less money in the long term, the avalanche method may be a better alternative. This involves, again, paying the minimum payments on all debts. However, instead of paying off the small debts, you concentrate on the ones with the highest interest rates. Not the biggest overall debts, but the interest rates. This means that you pay less interest overall and so while it might take longer to pay off, it saves you money.

These are just a few of the things that you can do to start clearing off your debts. Whatever way you do it, it is going to take time and effort, and of course, money, but hopefully these options will make you see that there is a way to escape the cycle.