How to accelerate debt reduction on your own

You can create your own fast debt reduction plan without negotiating with debt settlement institutions.

11:01 17 October 2013

If you have a debt that is difficult to repay, you probably don't want to negotiate with debt settlement institutions to get rid of it. There are some things you could do to accelerate your debt reduction on your own.

Assess your situation

Make a list of your spending and income and see where your budget could be improved. You have to know precisely how large your debt is and how long you are going to repay it.  This exercise is to become aware of things that you spend excessively on, and cut back your spending a little, if possible.

Decrease costs

Each cost accumulates over time, and finding a way to reduce it can help you repay the debt faster. The most efficient thing you could do in this situation is to find a way to reduce your interest costs. For example, you can check if you have the option to transfer the balance of a high interest credit card to a no interest option.

Increase income

There are other ways of increasing your income and accelerate debt reduction. One of them would be to sell the things you don't need in your house. Look around and see if there are things that you can turn into profit.

Consistency

If you managed to follow these steps, the only thing you need to do to accelerate your debt reduction is to remain consistent with reducing your costs and trying to raise your income. You just have to discipline yourself and keep repaying debt with the extra money you saved.

Bear in mind that you will have more money at your disposal, once you have finished paying those expensive debts. However, you need to be disciplined in your approach to forego certain things/treats that you may be accustomed to in the process.