How to Get Out of Debt
Posted August 18, 2013on:
Debt can accumulate quickly, especially as a student. Some smart prioritizing can help you avoid a lot of financial woes. Follow these suggestions to help get you out of the red and pay off your debt:
- Don’t panic.
- Ignoring it won’t make it go away. Face it head on now, before it gets worse.
- Write down and organize all of your debt. Note how much you owe, what the interest is, and whom you owe it to.
- Try to prioritize your debt by how much you owe and what consequences there are if it isn’t paid on time. Taxes and rent/mortgage are usually the most important to pay off first. If luxury items, like your TV, get repossessed, it’s not going to be the end of the world.
- Make a budget. How much money do you have coming in? What necessary expenses do you make every month?
- Try to negotiate your repayment plan. Some taxes will work with you to create a payment plan that works on your budget.
- Find ways to generate extra income. Work overtime, get a second job, have a garage sale, etc.
- Use the stack method to pay off your debt. Once you’ve paid off your first debt, apply that payment used for that debt to the next loan. When the second loan is paid off, add that payment to the next until all your loans are paid off.
- You’re not alone. Plenty of other people have been in the same difficult situation and gotten themselves out of it. It’s also important to remember that there are people who can help and guide you.
At Everest, you can get help from financial services to set up a budget that works for you. Contact us to find out how Everest can help you manage your finances: http://ow.ly/nLnbJ