Its no surprise that the U.S. economy is on a sharp decline. Americans are struggling to stay afloat, sometimes having to work more than one job just to make ends meet. Now more than ever, its imperative to learn how to get out and stay out of debt. The following three tips will help you get closer to your goal: a debt-free life. From prepaid credit cards, to debt consolidation, to freezing your credit cards (literally), you can break the chains of debt, starting today.
1. Prioritize Your Debts
While you may believe all debt is bad debt and should be wiped out in one fell swoop, thats not always realistic. Focus on the credit cards that have the lowest interest rate and/or the lowest amount on them. If you knock out one at a time beginning with the least amount it will give you a feeling of accomplishment and motivate you to keep at it.
Keep in mind that some debt is considered beneficial, such as a mortgage (provided its not upside-down) or home-equity loan. Tackle the credit cards first; try and consolidate them, if possible, with the one that has the lowest interest rate.
2. Use Prepaid Credit Cards & Prepaid Debit Cards
A relatively new concept,
