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12 Steps to Get out of Debt

…if you have given your pledge for a stranger or another, You are snared with the words of your lips, you are caught by the speech of your mouth. Do this now [at once and earnestly], my son, and deliver yourself when you have put yourself into the power of your neighbor; go, bestir and humble yourself, and beg your neighbor [to pay his debt and thereby release you].  Proverbs 6:1-5

Here are some practical tips to getting yourself out of debt

  1. Do not ignore the problem, it won’t go away
  2. Stop borrowing more on those credits cards or loans
  3. Calculate your debts, excluding your mortgage
  4. Set up automatic minimum repayments on all of them, so you don’t have late payment fees
  5. Change the repayment dates to within two days of your pay day
  6. Check what interest rates you’re paying on each and negotiate a reduction
  7. Give each debt a priority either smallest amount first or highest interest first
  8. Use your savings to pay off credit card debt, only if you can access the money again i.e. credit card
  9. Start selling items like your car (or downgrade it), electronics, excess clothes and shoes
  10. Check your credit report and credit score then check comparison websites for better interest rates based on your credit score
  11. Calculate taking out a debt consolidation loan to combine credit cards debts and loans into one lower interest payment
  12. Cut up old credit cards once you consolidate or pay off and don’t close the account yet as it will negatively affect your credit report

 Give not [unnecessary] sleep to your eyes, nor slumber to your eyelids; Deliver yourself, as a roe or gazelle from the hand of the hunter, and as a bird from the hand of the fowler. Proverbs 6:1-5

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