5 Steps towards quick and effective repayment of your debts!

1. Understand how much debt you have. Using credit cards often puts people out of touch with their
money. You'll need a clear picture of where you are financially if you want to make a workable
plan for getting out of debt fast. Gather all of your bills (credit cards, loans, etc.) and add the
totals to get a clear picture of your debt. Write down minimum monthly payments, due dates and
interest rates for each. Contact creditors to negotiate lower interest rates. Lower interest rates
lower your debt burden making it easier to pay off your bills faster.

2. Make a repayment plan. If you have several creditors, choose the one with the least amount
owed. This is the one you should pay off first. Make minimum payments to all of your creditors
except the one you are targeting for payoff. As you make your repayment plan, explore your
motivations--why do you want to pay off debts fast? Generally, working toward something with a
specific purpose will improve your chances for success.

3. Review your income and expenses. Write down and examine your income and expenses carefully
to find the money you will need to make extra payments on the targeted debt. Look for any
places where you can cut back. Clip coupons, go for basic instead of premium cable, bring coffee
and lunch from home, etc. Look for opportunities to save and bring in additional income (carpool,
sell on eBay, consider consignment or turn a hobby into an income-generating activity).

4. Direct all of the money you earn and save to your targeted debt. If possible, make payments
weekly or bi-weekly to reduce your average daily balance (on which finance charges are based).
You can do this easily by adding the creditor to your online banking service. As soon as the money
becomes available in your account, you just point and click to pay.

5. Repeat the steps until you are debt-free. Choose the next smallest debt and direct your financial
energy (including the money you were paying monthly on the debt that has been retired) toward
paying off this bill.