It’s a bad feeling when your debt just keep mounting but just try one of these methods and you will quickly start to see your debt drop.

Start With The Small Fry

It is easy to become overwhelmed by debt and do nothing but worry about it but if you focus on just reducing the smallest debt first that is a great step in the right direction. The smallest debt will be the easiest to reduce so just concentrate on that first. Once you have paid off the smallest debt then you can move on to the next smallest debt and so on. This approach makes managing debt much more… well, manageable. And it really works in a way that trying to tackle a bit of every debt you hold each month. So forget paying off a small amount on each credit card each month – just pay the minimum on all but the smallest debt. Once that’s gone simply repeat the process.

Of course you do need to pay the minimum on your credit cards and also pay any monthly repayments on loan commitments.

Remember the easiest way to have some spare cash to pay a bit extra off that smallest debt every month is to stop spending on everything except the essentials.

This process gets easier and easier over time because the minimum payment for the smallest debt will soon be freed up and be used to pay more of the next smallest debt. T’s about changing your attitude towards your debt – avoiding being overwhelmed and actually start making some progress to being debt free.

Minimise The Interest On Your Debts

We all know that it makes sense to minimise the amount of interest we are paying but sometimes when we are so anxious about our debt we can’t see a way to do that, or see what we should be doing. To make it simpler start by making a list of all your debt – credit cards, store cards, personal loans, guarantor loans, overdrafts, home loans, car finance. You name it – write it on your list. It can be quite frightening to see the debt all there in black and white but if you don’t do this you will have no chance of determining which interest rates are the worst and how you can start to change this.

Once you can see which debts are the worst culprits i.e. those with the highest rate of interest look and see if you can transfer some to a cheaper option – interest-free credit card transfers are abundant right now so take advantage of them if you can by transferring expensive debt over to the zero per cent deal.

If you can’t get approval for transferring debt then just focus all you repayment efforts on the debt with the highest interest and pay that down as soon as you can.