List your debts by kind, quantity, interest rate, and minimum monthly payment. This clarifies your finances.
High-interest loans cost the most in interest over time. This is usually credit card or personal loan debt.
List all your income and spending. Divide your money between debt repayment and basic living expenses.
Before actively paying off debt, save $1,000 for unexpected emergencies. This prevents emergency debt.
Contact your creditors to cut interest rates or improve loan terms. They may be easier to control.
: Review your budget for non-essential expenses and find areas where you can cut back to allocate more money toward debt repayment.
Find ways to increase your income, such as taking on a part-time job, freelancing, or selling unused items.
While paying off debt, avoid adding to it. Cut credit cards, utilize cash, or limit expenditures.