Action Plan for Getting Out of Debt
by Melissa Winger
A popular question that we hear is……”How do I get out of Credit Card Debt?”
The complex answer is that each situation is different, so it’s helpful to talk to a Certified Credit Counselor that can guide you and help you with a Debt Management Plan and budgeting.
The simple answer is to make a plan and stick to it.
We have found that there are 5 basic steps that apply to anyone that wants to get out of debt:
1. Stop using the credit cards.
-freeze them or shred them if you have to.
2. Call your creditors
-the creditors may be willing to lower interest rates or put you on an internal program
3. Increase your Income
-find a part time job
-work overtime if you can
-review tax withholdings
-consider a side hustle such as selling unneeded items or plasma donation
4. Sell any Extra’s
-boats, RV’s, ATV’s…big ticket items that can make a sizeable difference in your debt load
5. Reduce your expenses
-make a budget
-make cuts to variable expenses (cell phones, cable/dish, gym and other membership services)
-stick to a simplified grocery list
-stop eating out
-track spending leaks (coffee out, convenience items, extra fees for paying late, etc)
As always, we are available and happy to answer any questions that you may have about credit, debts, and credit scores at 1-800-955-5765.