5 Steps For Developing Your Own Debt Relief Plan

If credit card debt is causing you stress, then it's time to take action.  No matter how much or how little you owe, the best time to start paying down your bills is right now.

 Don't wait for your raise or promotion at work.  Don't wait until after the holidays.  Don't wait until you get a better job.  And especially don't wait until you win the lottery!  Each day you wait, is one day wasted.

 Sure, getting out of debt is not easy.  It takes some sacrifice.  And some hard work.  And you certainly won't get out of debt overnight.

 But like the old saying goes, "a journey of a thousand miles begins with a single step."

 So, are you ready to take your first step?  If so, here's how you can develop your own debt relief plan:

1) Write down exactly how much you owe.
It may be painful to see how much money you owe, but don't skip this step.  Be honest with yourself.  Unless you know exactly where you stand, it will be easy to give up. So grab a pen and paper, get your most recent credit card statements (or call the customer service number on the back of the card) and write a list of your balances.  Trust me, it will be worthwhile.

2) Contact each creditor and ask for the lowest interest rate.
If you have any interest rates over 10%, then call each creditor and ask them to lower your rate.  Even a few percentage points will add up.  If they can't help you, wait 30 days and try again.  And keep calling every 30 days until you get your interest rates in the 10-15% range (lower if possible).  Over time, this will help you pay off your credit card bills much faster.

3) Pick one credit card bill to eliminate first.
Going strictly by the numbers, you're better off starting with the card that has the highest interest rate.  Practically, you're better off starting with the lowest balance.  You'll see quicker results, and that will help keep you motivated.  Add an extra $10 or $20 or $50 a month, whatever you can afford, to pay it off as quickly as possible.  And once you pay off that bill, then take all the money you were paying and add it to the next smallest balance.  Before long, you'll start making some real progress!

4) Be frugal.
You can't get out of debt if you keep spending more than you make.  So look for ways to cut costs - Use coupons.  Eliminate "extras".  Shop around for lower rates on your monthly bills.  Have a tag sale to sell things you don't need any more (or sell them online with Craigslist.com).  If you try real hard, you'll find ways to save money that you never thought of before.

5) Don't let anything stop you.
No excuses.  We all have bad luck once in a while - car repairs, medical bills, home improvement.  That's ok.  Do what you have to do to survive.  Then get right back to your debt relief plan.  Without a doubt, this is the most important step!

Sounds easy?  Of course not.  It probably took you a long time to get into debt.  So it will take a while to get out.  But if you come up with a plan, and stick with it, eventually you'll be free of all of you credit card bills.

So get started on your debt relief plan right away!

Kris Bickell is the owner of www.Debt-Tips.com, which offers helpful tips on credit card debt settlement services and other money saving advice.