When you are drowning in debt, it sometimes seems like you will never be able to come out of the hole that you keep digging yourself.  But, it is possible since I was able to pay off my debt, and all you need to do is following some of these tips and you will be able to pay off debts too.  I definitely commend you for taking the steps to pay off debt, and not going to a debt consolidation place.  While those can help, they hurt your credit rating for a few years, despite what credit restoration companies try to advertise.

One of the first things you need to do in order to settle credit card debt is to analyze all of your debt.  Often times your mortgage and car payments count as acceptable debt.  Those should probably be paid off last.  Student loans are also usually low interest and very long term, so you can focus on those after other types of debt.  The first place I would look with regards to your debt is to pay off credit card debt.

Credit card debt is usually piled up between multiple credit cards, all with varying interests rates.  A lot of times people have been transferring money from one credit card to another in order to get a low interest rate or a 0% rate for a few months.  Paying off debt on credit cards will take some focus, and there are two different strategies that people use when it comes to completely erase debt.

One of those way is to attack the credit card with the lowest balance on it.  They call this the “snowball method.”  Essentially, they believe that you will gain momentum and excitement from paying off credit cards, and it will motivate you to continue attacking the larger balance cards.  This can be a good strategy if you are really needing motivation, but I don’t think it is the best way to go about it.

One of the other ways to pay off debt is to attack the credit card with the higher interest rate.  By doing that, you will not be paying as much in the long term.  High interest rates can keep people in debt longer, and so the more interest that you tack onto the credit cards, the longer it will take you to get out of debt.

When it comes to how to pay off credit card debt, I can only give you the different methods of doing it, but you will have to do what it takes in order to get those cards paid off.

One of the things I needed to figure out to pay off my debts was how to get some extra income, in order to put towards my credit cards.  “How to pay off debt” can also be asked “How to get more money” – as long as you are dedicated enough and disciplined enough to put the extra money towards paying off debts. You can find stuff around your house that are you willing and able to sell and sell them on Craigslist or on eBay.  That will help you to get some extra cash and use that money to pay down your debts.  You can also get a part time job and put that money towards your debt.   You can also cut down on your spending, especially on Starbucks, fast food places and restaurants.  If you buckle down for 6-12 months in those areas, you’ll notice that you have a lot more money than you did before.

Some people choose to get a loan to pay off debt.  If you can get a good interest rate, it can really help you to consolidate your debt into one payment each month.  But, if the interest rate isn’t good enough, or if it doesn’t encompass enough of your other debts, it may not be worth it.

I’ll tell you, there was no greater feeling than when I was able to pay off all my debts.  I hope I have been able to show you how to pay off debts, and if you use these tips, you can definitely be debt free also.  Good luck, and no matter which method you choose to pay down your credit cards, and no matter how you get some extra income, just be disciplined about becoming debt free, and you will succeed.  There is no quick and magical way to erase bad credit… it just takes hard work.