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How to Get out of Debt Fast


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TERMINOLOGY

Knowing how to get out of debt fast can be a lifesaver for anyone who has had to live under the crushing burden of debt and financial deficit. While it is all too easy to find oneself buried under a bevy of bills and loans, the good news is that there are tried and tested methods of emerging from debt relatively unscathed. It is far from easy but also not impossible. 

Taking Inventory of Your Debt

The very first thing you must to do get out of debt quickly and completely is to know exactly how much you owe. This means taking inventory of not only your monthly bills but of all outstanding debts, including everything from student loans to bills in collections to utilities. This first step will likely involve a good deal of research to fully uncover the grand total of your debt. It will also involve being honest with yourself. As much as debt is a financial concern, it is also a psychological and emotional one that demands honesty. This means opening up bills you may have never opened (as uncomfortable or embarrassing as that may be), contacting lenders about past dues and really acknowledging every bit of debt that you will now have to pay back. After all, you can pay back only what you know you owe. So, get ready for a rude but necessary awakening. 

Asking a Credit Card Company to Lower Your Rate

If you are like most consumers, most of your debt will be in the form of credit card bills. If you have been a good consumer and paid your bills on time in the past, you can use that history to negotiate a lower interest rate for your credit card. How low the company will be willing to go will depend on a multitude of factors (including your overall deemed credit worthiness), but never be afraid of picking up your phone and calling to get a better rate. If the customer service representative you speak with refuses to lower your rate, ask to speak to the supervisor. And if the supervisor refuses to lower your rate, call back every week (or day even) until they give you what you want. Remember: they are in business to serve you. If they can't meet your demands, then close the account and go to a company that will. 

Checking Your Credit Score

Keeping tabs on your credit score is a good way to emerge from debt because it does two things: one, it allows you to view the full history of your past and present finances (including debts you may have forgotten existed), and two, it gives you insight into what you need to do to make yourself debt free. It will also help you weed out any debts that may have been mistakenly added to your report, allowing you to erase the debt and raise your score quickly. 

Trim Monthly Bills

Another surefire method of emerging from debt is to cut your monthly expenses to as little as possible. This means everything from negotiating lower credit card and insurance rates to cutting luxury expenditure on things such as automobiles, cable and Internet service and eating out. You may find yourself yearning for the old luxuries at first, but once you see your debt total falling each month, you'll know that there is just no going back.