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How to Get Out of Debt Part III

Here is the finale on our series, Part III, of getting yourself out of debt. If you haven’t read the first two parts, click here to view How to Get Out of Debt Part I, How to Get Out of Debt Part II.

6. Time to make some phone calls. I’m not going to recommend that everyone cut up all of their credit cards unless they’re in serious trouble. If you’ve been keeping current on all of your payments while getting deeper into debt, you at least have a chance to help yourself out. Call all of your big credit card companies (Visa, Mastercard, Discover) and ask for a rate reduction. If you’ve kept up on payments, most of them will offer you a reduction, which can save you a lot of money in fees, and in some ways immediately reduce your payment amount.

Next, if you need a quick infusion of cash and have a car payment, call them and ask if you can delay payment for one month. Most auto loan companies will give owners upwards of 10 times during the life of a loan where they can delay payment a month, though you will pay a very small fee and your loan will be extended a month for each delay. Still, it’s a nice way to get a one month jump on some funds that might help you get over, or caught up, on some delinquencies.

7. Get a part time job. Yes, I know this one everyone hates. The thing is that there’s only so much one can hope to save while trying to cut expenses, and a nice part time job might add at least $200 to your cash flow during the month, often much more. Of course if you work a full time job with lots of overtime this might be hard to do, but for most people, that’s not a concern.

Here’s the thing. There are different kinds of part time jobs. If you can write, you might be able to find some freelance writing work that could earn you some nice pay and you won’t even have to leave the house. Maybe you can find something that fits a particular skill you have. In Loral Langemeyer’s book The Millionaire Maker, she often makes that a part of her recommendations for clients who work with her, and many of them have found that it turns into a better career than the one they’d been doing, makes more money, and they enjoy it more.

Following these tips will get you out of debt, though it’s not an easy process and could take awhile. However, alleviating the worries of whether or not you will ever be able to overcome your debt will be a big benefit to you once you see what you’re up against, and you’ll love the feeling of independence that you’ll end up giving yourself.

See more:
10 Steps to Overcoming Credit Card Debt

How to Negotiate A Credit Card Settlement

How do you plan to get ahead? Ways to Increase Your Income

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Debt consolidation is the process of minimizing your creditors and consolidating your debt. After consolidation, you will have less creditors (ideally one) and you should be paying less in interest each month. Your debt will likely become more manageable and easier to payoff, but it's important to remember that every successful consolidation process depends on your ability to live within your means. Thanks for stopping by to learn about consolidation and the different consolidation loans and processes that are available.