How to Eliminate Debt

Over 1.6 million people filed for bankruptcy last year. Most people are using their credit cards to buy everything they see, and do not know when to quit.

Why are most of us in debt? How do we eliminate these debts? Below are steps you need to follow to take yourself out of debt.

DON"T over spend
Do not spend what you don't have. Make a budget a stick to it. Figure out your "needs from your wants"

Cash ONLY
Pay with cash instead of credit cards, because when you have a credit card you tend to over spend. This will help you to save, because if you use cash, you stop shopping when the cash is used up.

Save for rainy day
It is always wise to save for the rainy day (loss jobs,disability or divorce). Have a least 3 months worth of mone set aside for expenses. Start saving it now and consider that money untouchable.

Negotiate With Creditors
You can negotiate with your lenders for lower interest rate, or ask that late charges or annual fees be waived. Credit card companies are willing to negotiate, as they do not want to lose your business, especially if you are a good customers. So call today and negotiate a deal.

DON'T pay just the minimum on credit cards.
This is a no no, pamying just the minimum balance does no good for your credit. Try to pay at least 3 times the minimum due. Most credit card companies typically require that you pay at least 2 percent of the outstanding balance.

Pay on time
Paying all your bills on time if necessary is the best thing to do. This will help you to eliminate all late fees. Late fees can be very expensive for example late charges for credit card payment is $35, so if you are late every month for a year you would have paid $420 as late charges.

Set up automated payment if possible, as this will save you a lot in the future.

Lower your Debts
Always look for ways to lower your debts. You can refinance your car loan and save big bucks. Go to http://www.capitaloneauto.com/, this is the nation's largest online lender. They will you to save money on your monthly auto payments.

If you want to save on your bills such as internet service, telephone bills try http://www.lowermybills.com/ . This website has over 18 categories of bills.