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Debt Management Law News

April 22, 2010

Eight Key Ways to Pay Down Debt—Fast.

If you or a loved one is suffocating under a mountain of
debt, this week’s article offers 8 vital strategies to help you pay it down, fast.

Essentially, the first key to getting out of debt requires you to break your strategy into two key components: 1) Reduce your interest rates and determining what to pay, and 2) Pay it down.

Let us now examine what that looks like for someone looking to avoid filing bankruptcy
in Texas as part of their overall “get out of debt” strategy.

Reduce Your Interest Rate and Determine What To Pay

1. List information for all of your debts. Before consulting with a Houston
Bankruptcy attorney, take the time to physically list out WHO you owe money to, the
AMOUNT you owe, and the INTEREST RATE you are paying. Most people who are in
debt avoid looking at these statements. The truth is often difficult to face, but facing this information honestly is important. Plus you’ll need to take this step anyway anyway if you do meet with a Texas bankruptcy lawyer in the future.

2. Call every place you owe money. This is especially important if you are
delinquent in your payments. Let them know that you will be trying to pay off your
current debt and ask for their assistance. Ask them for a lower rate of interest. Ask them for a payment schedule you can actually pay. Let them know you’d like to work with
them in lieu of filing bankruptcy in Houston, TX. Lenders are not gentle to middle-class deadbeats who charge too much and then have to be wrestled to the mat for payment. They are much kinder to people who contact them, explain their troubles and ask for assistance.

3. If possible, consolidate all your debt into the lowest possible interest
rate. This may involve opening yet another credit card. The credit offers you get flooded with through the mail are *not* the cards with the lowest interest rate. They do not give you cash back, airline miles, or discount gift points. None of these reward programs are worth the high cost you are paying for them. Some credit cards may offer some number of months with little or no interest. These can give you some grace period to reduce your debt. You can get information on low-rate, no-fee credit cards
at http://www.cardtrak.com

4. Pay everything you can on the debt with the highest interest rate. Pay the
minimum on everything else. (Do this if you can not consolidate everything to the lowest possible interest.)

5. Collect all the credit cards in the house. Lock the cards with a high interest rate
someplace safe. These are not to be used while you are getting out of debt. It does not
matter what wonderful perks are offered for using these cards. They are never worth the
trouble and heartache they cause your family.

Paying It Down

6. Try to reduce your fixed expenses and use the difference saved each
month to pay off your debt. Eliminating features on your phone or dropping
channels from your cable plan will consistently save you money each month.

7. Make one-shot reductions in your debt. You can hold a yard sale and use all the
proceeds to pay down your debt. Pay cash for everything and use all your change to pay
down your debt. Take an evening job or use all of a spouse's income for the next few
months to pay down your debt.

8. Take drastic measures until debt-free. No eating out. No movie rentals. No
discretionary spending. Realize that some people live on half of what you make. They
use 65% of that for their regular expenses, save 15%, put 10% away for large purchases,
and give 10% away to charities. If they can do that, you can live without cable television
and gym membership until you are out of debt.

This is strong medicine...but I offer this advice as the best kind of friend: one who
speaks the truth, in love.

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

www.jdsupra.com


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