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Reducing Debt Do your homework - Prepare a budget; one of the goals should be to pay off your debts. Cut expenses where possible. Decide how much extra money you can afford, based on your budget, on your bills each month. Make sure you have an emergency fund of three months worth of expenses in the bank first. (If you don't have an emergency fund at all, then start saving for one month's worth of expenses. Once you obtain that goal, work towards the second and third months' worth. If you try to come up with such a large sum of money all at one time, it is easy to get distracted or get discouraged. You will be more successful if you set obtainable, realistic goals.)
Strategies - Pay the extra amount available from your budget to your creditors like part of the bill. Do it regularly. If you send what's left over at the end of the month, there will never be any extra left to send. Compare the interest rates on your loans. Pay extra on those with the highest interest rates first. Shop for cheaper interest rates. Check with your local credit union, bank, or your life insurance agent to see if you can take out a loan with a lower interest rate to pay off those with higher rates. Most importantly, STOP CHARGING!
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Guide to the Bad Credit Mortgage world. Get rid of your bad credit now.