Debt Trap

The most common choices to pay off debt are:

* Pay your debt yourself using the 2 methods of snowballing!

* Debt consolidation loans.

* Debt negotiation.

* Going Bankrupt. [Not recommended]

The question is...What Can You Do if you're in debt?

The most common way of how to pay off debt is snowballing; it begins out slow and as the name implies picks up speed similar to a snow ball rolling down a hill, its increases in speed and in size. There are two ways of doing this:

The first choice is the highest interest rate first!

As it implies you start to pay off your debt with the highest interest being charged first. By paying down this debt first you will save money over time and will benefit you the most. If the highest interest debt has the highest balance owing it will take the longest to pay down, over this longer time period it’s easier to lose incentive paying it down. When it takes longer to pay down you can’t seem to get ahead.

The second choice is paying down the lowest owing first!

This method offers substantial benefits as they will be paid down quicker and when it's paid off your going to have a real good feeling of accomplishment, it turn encourages you to keep going. Pick the one you want to use to pay down your debt.

Sit down and make a list of your debts in the order that you want to pay them down in. on your list put the interest rate being charged… the balance owing…and the minimum payment required. Use all your spare money for paying down the first debt on your list. Pay the minimum payment required on all your other debts owing.

In DebtNow the best part, when you’re finished repaying this first debt, [hooray!!!] Now take it off the list. By this time you should have less owing on your other outstanding debts, now start to pay down the second debt on your list, and continue to make the minimum payments on the other debts you have. See how this snowballing effect is working. Now you're more excited because you’ve wiped out a debt! As a result your Money Problems are starting to go away!

Debt consolidation loans.

This is where you get a loan to pay off your current debts. The Consolidation agency pays all your debts and you pay them back monthly this leaves you with only one payment to make. This is a second to last resort to prevent bankruptcy and gives you some relieve from the phone calls, letters and a bit of peace of mind.

A very important thing to remember is you need to check out each companies credentials, customer satisfaction, are they a member of the B.B.B. Talk to a few before you decide on one, most will be very helpful and have all the information you want as well as counselor’s that you can talk too. It will cost you more in the long run, but your payment is usually lower.

Debt negotiation!

Takes a little different approach to the way it handles your debt. You can get the help of a credit counselor or you can do it yourself. The plan is to get in touch with the right contact person and explaining your situation and then negotiating for a lower monthly payment or a lower rate of interest which helps you by lessening the amount of the monthly payment.

Overwhelming DebtHowever this can be a daunting task especially if your easily imitated and don’t have the experience dealing with your creditors and their nasty habits. Again I would suggest a good credit counselor whose experienced in these matters to help you are act on your behalf.

Going Bankrupt!

Not a real good option use only as a last resort when all your other attempts have failed!


As you already know “How to pay off debt” is not going to be an easy task. Getting in over one’s head is easy…Debt is a headless dragon…and it’s VITAL that you learn to manage your spending. Your number one priority now is to eliminate that nagging debt…before it destroys your marriage, friendships and health! Also be very aware of What Happens If You Don't Pay!