Steps to Becoming Debt-Free

Many Americans find themselves deep in debt and are not quite sure how they got there. Getting in to debt is easy enough, but getting out of debt takes time, patience, and self-control. If you are ready to get out of debt and get your life back on track, some simple guidelines that can point you in the right direction are as follows:

  • Keep track of your spending. Many people do not realize that small purchases– daily coffee, take-out lunches, bottled water– can add up quickly. You may realize that you are spending more than $100 a week on unnecessary items. By reducing your spending to only the things you really need, you can save over $5000 in one year and apply this to your debt.
  • Always make your minimum payment. You may think that if you wait a few days past the due date, you will have enough money to make a higher payment. However, credit card companies add excessive fees and other penalties to those who miss payments, adding even more to your debt.
  • Pay off debts with high interest rates first. It might seem logical to pay off smaller loans first before tackling larger ones. However, it is important to being paying off debts with high interest rates as soon as possible, regardless of how large or small. Higher interest rates mean that the longer you have the debt, the more money you will owe.

Each of these steps you can take on your own to work to reduce your debt. However, for some people, these steps alone are not enough. In some cases, a Birmingham debt consolidation lawyer can help you negotiate with creditors, consolidate your debts, give you financial advice, and take other steps to try to help you improve your situation.

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If you are struggling with excessive debt, the Birmingham bankruptcy lawyers at [firm-name] can help. Contact our offices today at [phone-number] for more information.

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