Getting out of debt Fast

Getting out of debt is not easy and no matter what you do you end up with more debt then you started with. loan interest has some of the best advice that you can use to reduce your debt fast and eventually pay all of your debts off. These are simple and very effective tips that will reduce your debt fast.

Step1

Pay your debt as fast as possible, the longer you take to pay your debts,  the more you will have to pay for it . example if you have $1000 owing with 10% interest and if you pay it off in a year it will cost you $1100 but if you pay your debt in 6 months it will only cost you $1050 so you save a lot of money if you pay off your debt faster.

Check your spending and see where you can cut back few dollars here and there and use that money to make your debt repayments.

Step 2

Pay off your debt that has the highest interest rates as you will be able to save on interest if you can pay it off quickly. Usually credit cards have a higher interest rates so try and pay them off as fast as you can and use the interest saved to pay off other debts. Remember when paying your debt every dollar counts.

Step 3

Get your family to help if they can and borrow money to pay of your high interest loans. Pay your family as you would be paying the lenders and agree upon a set interest rate and i am sure you will be able to get a loan from them for half the rate from the major lenders. Te family members will benefit from the extra money at the end as they will be getting a good return on their money compared to having it sitting in the bank. example if your family lends you $1000 at 5% interest they will be making $50 at the end of the loan term. you will save at least 50% on interest as lenders charge interest rates from 10% and up. The family will benefit as banks usually have savings rate around 2% or so.

at the end of the day you will benefit and so will your family so talk to them an see if you can get a loan to pay off your debt and start fresh.