Getting Out of Debt – Most experts agree that the best way to achieve your financial goals is to pay down your debt first. Getting out of debt can mean being debt free or just lowering your debt to a manageable level. This will free up important cash that will be needed for investing into savings, mutual funds, stocks, real estate, precious metals and so on.
Next to your maintaining your health, which of course is invaluable, getting out of debt should be priority one.
Financial experts like Dave Ramsey suggest that once you get out of debt, you should never, ever go back into a life of debt and pay cash for everything. Others like Robert Kiyosaki say you should leverage good debt so you can build up wealth quicker and easier. Only you will know which choice is the wisest course of action for you. So what are a few good ways for getting out of debt? Let’s take a look.
Earn More Money
Start doing garage sales, get a second job for awhile, sell things on eBay, become an Affiliate Marketer for websites like Amazon.com. Sell off expensive items you really don’t need and use the money towards the debt. Nothing will be quicker than getting out debt with earnings from extra income sources.
Pay Off Bills With The Smallest Balance First
Forget about interest rates for now. By paying off those small balances first, you will be freeing up extra money to put towards the remaining debt. It would be wise to rid of any newer cars with loans on them and get a nice used car for a quarter the price. Again, use the extra money towards paying down your debt. It is important to cut back on expenses until you reach your goal of getting out of debt.
Getting Out of Debt
Also, it would be a great idea to take a look at your annual credit report to see where you currently stand. Getting out of debt will be one of the most rewarding decisions you will ever make. You will feel better, sleep better and walk with a swagger you haven’t seen in a while. So get out there and get started today.