Debt reduction is an obligation you should fulfill towards your business and you. As any debt, whether business or personal, can eat away your reserves and lead to stress. Debt reduction or planning for it is crucial.
Debt reduction starts with an honest assessment of your financial situation take stock of your expenses and your income. After that, you should have an honest discussion with your creditors. They will help you if they know that you are serious about reducing debt. Set some achievable targets and work towards the goal. Try to curb the spending wherever you can, even if it means parting with some of the luxuries, you were enjoying earlier.
You should work out a sound plan for debt reduction. Make it your number one priority. Make a list of all the debt or credit card debt you have. Note the interest rates of all the credit cards. Keep the lowest interest rates and cutback on all the others. Yes, you will need these drastic measures.
You should use the cards only in emergency and for essential stuff. Use a debit card or cash for other items or services. Most of the credit cards need low minimum payments. To avoid staying in the debt for a longtime, make some more sacrifice and pay more than the minimum payments due. Pay more for the card with the largest amount of balance.
An important step in debt reduction is debt consolidation. Balance transfer if your debt situation is too complex and you are unable to manage it. Pay off the debt with higher interest rates first before paying the lower interest card or loans. This way you can simplify your complex situation. Go in planned and positive and you can get debt free.
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