Removing Debt

Most people have either multiple credit cards, car loans, personal loans and not to mention a mortgage. Having many loans and lines of credit at the same time can be very dangerous. The money that you owe can get high very quickly. If you are in this position or you just want to pay off some of your loans quicker, here are some basic tips that you can do to help get rid of some unwanted debt and monthly payments.

• Focus on paying off the loan or credit card with the highest interest rate first
• Doing this will save you lots of money in the amount of interest that you pay every month. Most credit cards carry a interest rate over 13%.
• Apply all extra income to the highest rate loan or card that you are focusing on
• Make the minimum payment on all your other lines of credit, this will help you pay off the highest rate loan or card the quickest. Spreading your money out over lots of payments does not go very far.
• Stop spending
• Sounds easy but this is the hardest one to do. Always ask yourself, "Do I need this". Just by putting $30 on your card can cost you a lot more in the long run.
• Move what you owe to a lower rate or consolidate
  
• If you have high rates on your lines of credit look around for offers with lower rates. It is easy to find a credit card company that will give you 0% for a year or 2. This is a great way to really take down your debt, because you just went from 12% to 0%. You can also consolidate multiple loans that have a higher rate to a lower rate.
  
• Look for ways to increase your monthly cash flow
• This is always tricky. The easiest way to do this is review your monthly payments such as Internet, utilities, TV and many other forms of payments and decide where you can cut the fat. You will be surprised at where you can save. Take that money you save and pay off debt or invest it.
• Ask a professional
• It is never a bad idea to get your self a financial adviser. They can help you in your situation with investing and saving money. They can also create a custom plan for you and your family.