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Classical Methods To Get Rid Of Debts

Aug 17, 2007
People who are burdened with debts are in a horrible state. They search for remedies that may help them to get rid of these debts as soon as possible and start living a debt free life. Nowadays, there are many new methods and means to help you strategize your financial state and go about paying the debts. But sometimes the most effective way is the age old practice of limiting your expenses, increasing your savings and paying the installments. For this you will have to exercise a lot of self control.

An age old practice is to pay more than the minimum stipulated amount. You should in fact try to pay twice that amount. This however could be tough in some cases. But try to always exceed the required minimum. Paying the minimum will only satisfy the interest for that period. By paying more you will be able to get rid of the debt faster and save yourself the burden of the increasing interest rates. As each debt gets paid off, use the installment money for that debt to increase the installments for the other debts.

To do so you will have to increase your savings. Try to limit your expenses by purchasing only those goods that are absolutely essential. Plan a budget and set realistic targets. While planning the budget tabulate your sources of income and also your expenses. Plan such that your income always exceeds the expenses. The amount in excess is your savings. Stay away from luxurious items and other unnecessary, fancy goods. Most importantly, always ensure that you remain within the budget limits at all times.

Once you are in debt, avoid taking any more loans. This will only cause your debts to keep spiraling uncontrollably. Avoid going in for another credit card or using one loan to pay off another. This makes sense only if the new interest rate is lower than the existing one. However you should be absolutely aware of all the terms and conditions before taking this step or you could get yourself into more trouble.

Another method could be going in for debt consolidation, as this could help you save a lot of money especially if you have high interest loans.
Always be punctual when paying your installments. You do not want a fine to further burden your finances. Also this will delay you further and eat up more of your income.
About the Author
Jay Moncliff is the founder of http://consolidationcreditdebtdeals.debtrelief2000.info ; a website specialized on counseling credit debt , resources and articles. More info on counseling credit debt , bad credit debt at: bad credit debt .
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