Getting Out of Debt

Getting Out of Debt-The Most Important Thing

Twenty-eight-year-old Greg Rettich is living paycheck to paycheck because of his credit-card bills. But debt can soar because of many other reasons, such as a medical emergency, job loss or unforeseen car repairs. The most important thing Greg did was to recognize that he was in trouble and do something about it.

If you can’t get rid of your credit-card debt, and it keeps on growing: 

1. Figure out what you’re spending your money on and cut back where you can.

2. Try and put all your credit-card debt on one card. And find the lowest interest rate you can. Even if it’s only an introductory rate, it’ll be worth it.

3. Be aggressive about paying down debt. Make your monthly payment as high as you can and put any extra money towards the card.

4. Think about switching from credit cards to a debit card. Remember, when you use a credit card, you are borrowing money.

5. Consider a credit-card counseling service. It can be a good source of support.