Many of you want to get yourselves out of debt and sometimes it seems climbing Mount Everest might be an easier task.
Financial planner Scott Cole has some real ways to erase your debt.
TIP NUMBER 1: Stop it- The first step is to simply stop taking on debt. Quit charging stuff.
TIP NUMBER 2 : Build it- You may not think about it but getting an emergency fund in place is critical. If not, when you face an emergency while paying down your debt, what do you do? You end up taking on more debt so an E fund is important.
TIP NUMBER 3: Face it- You need to look at the debt straight in the eye. You need to be able to say at any time, this is how much debt I have. This sets some realistic expectations so you know what your facing and you can make the commitment for the long haul.
TIP NUMBER 4: Attack it- I prefer the "snowball" method. There are two possibilities. Prioritize either by interest rate or balance size.
Pay minimum payments on all, but your priority debt is where you put everything extra. As that is paid off you then take the money you were paying for that and apply the same principle to the next in line and so on and so on until it is all gone.
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