How to Finance Debts
- 1). Analyze your budget and how you are spending your money by listing how much you make and how much is being spent for housing, utilities, food and other expenses.
- 2). Examine your budget for expenses that can be eliminated or adjusted. If you are eating at restaurants too much or spending too much on cable television or Internet service, eliminate or lessen the amount of money you spend on these expenses. Making small adjustments can add up over time and help you put more money toward paying off your debt.
- 3). Call the loan officers who manage your loans and ask if you can consolidate your debt into one payment, which may save you some interest expense every month and allow you to pay the debt off quicker. When you consolidate, you will be paying off a larger percentage of the principal of the loan each month than if you were paying your various debts separately.
- 4). Make more than the minimum payment on your credit card bill, which will chip away at the amount owed much faster than if you paid the minimum each month. If you have more than one credit card, target one credit card and make an effort over a few months to get the balance down and move on to the other credit card. Once the balance is paid down on a credit card, avoid using the card and building up more debt.
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