Nobody is very interested in being debt-riddled. There are other, far more enjoyable ways to spend life, and none of these includes receiving phone calls from dodgy debt collectors. More people are moving away from using their credit cards, which could be linked to the pinch we are all feeling. So you’re not the only one who might be looking at ways to beat the vicious debt cycle. Chances are good that you are one of several millions looking for a way out of the insane levels of debt they have built up over the years.

If you have time to do a very quick Googling, type in debt reduction and you will have access to over 16,000,000,000 web pages that deals with this subject. The amount of debt reduction programs available is staggering, rivaled perhaps only by the number of desperate applicants who want to live a little and opt for debt consolidation.

What, then, is the best way to get rid of debt?

Use one, lower-rate credit card. These could be credit cards, store cards or other unsecured loans. We all have them. They have high interest rates and make it easy to pay for things that we really do not need, and cannot afford. They may be a great way to budget; both for everyday items, as well as the so-called big-ticket purchases, but credit should be used with a lot of prudence.

You can ease your stress levels by switching to a single credit card.. You could do well with a lower interest rate – or a zero interest rate – but be careful to check the terms and conditions attached to the new rate.

Do some furious research before you commit to anything. Employ your stealth Googling skills to track down only the very best deals. You’re worth it, right? There are many, many cards out there but you want one that will transfer your balance onto a lower rate. This method relies on you to cut up the old debt-free cards and not to use them again.

Debt consolidation is king

This is not as bad an idea as it may seem. Debt consolidation can give you relief from your creditors. And yourself. You’ll be able to relax again, enjoy the moment for what it is and not fret over how you’ll be able to afford paying rent and have something to eat until it is pay day again. Finding a good debt consolidation loan – one with favourable rates – will depend on whether or not your credit score is stable. A steady income from your employment would also help greatly.

Estate sales are all the rage

What items do you have lurking in your garage? When last did these items see a glorious summer day or a blisteringly cold winter’s day? Many people are tapping into the neglected art of estate sales. There might be a couple of items laying around that you could sell for some extra cash. Do you have jewelery that you have not worn for some years? Or what about that third car that has become something of a white elephant, perhaps?

The money you gain from selling these items could be just what will save you from your debt. Use it to pay off your credit card debt or any other unsecured debt you may have.

Hold down a second job

After a hard day at the office, or the oil rig, or at the restaurant, it is not surprising that most of us would like to go home and unwind a bit. But, this is not the reality for a growing number of UK professionals. According to this article from the BBC there are as many as 25% of us who have a second job.

No one said it was fun but it makes sense: rather grimace and bear it now instead of a near certain bankruptcy at some stage in the future. Use whatever income you have now to pay off any outstanding bills. There is some arguments over this: some say pay off the bills with the highest interest rate; others say you should tackle the smallest debt first. Do what feels good for you, as long as you make an effort with your debt.

Find an escape mechanism

Your level of debt should not get you down. Relax and figure out creative ways to make money. what else can you do to pay off your bills? Perhaps you have a mortgage that will allow you to dip into it, or perhaps you have stocks laying around that you can sell.

This entry was posted on Monday, February 25th, 2008 at 10:27 am and is filed under Debt Advice. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.