6 Tips for Paying Down Significant Debt

May 31, 2015

If you are among the many people overwhelmed by serious debt, one of the first steps you may need to take to start improving your financial situation will likely be to start paying down your debt.

In the face of a lot of debt, however, it can be difficult to know just how to do this. Below are some helpful tips that can assist you in getting organized and developing an effective plan for reducing your overall debt obligations and, ideally, helping you better your financial situation.

How to Pay Down a lot of Debt

1 – Calculate what you owe.

These tips can help you pay down significant debt and improve your finances, an experienced Colorado Springs bankruptcy attorney explains.

These tips can help you pay down significant debt and improve your finances, an experienced Colorado Springs bankruptcy attorney explains.

Do you have a firm idea of what you are paying each month for all of your debt obligations? If not, this is where you should start. Determine how much you owe to each of your creditors.

2 – Prioritize your debts.

With a list of all of your debt obligations, the next step will be to figure out which debts are costing you the most; in other words, which debts are associated with the highest interest rates? Pinpointing these and paying the most towards these debts first will be crucial to making your dollars stretch as far as possible when it comes to reducing your debt.

3 – Pay more than the minimum monthly payment on at least one debt.

If you only ever pay the minimum monthly payment on all of your debt, you’ll likely get nowhere on reducing the principal. So, for at least one of your highest priority debts, make sure you are paying more than the minimum payment.

4 – Try not to add to your current debt.

As you work on reducing your debt obligations, do your best to minimize any new debt you may accumulate. In particular, try not to do things like taking out new credit cards, as this will end up subverting your efforts to climb out of debt.

5 – Put yourself on a budget.

Going hand-in-hand with the above tip, consider living on a budget so that you are focused on:

  • How you are spending your money.
  • Not spending your money on frivolous things (when the money would be better spent towards reducing your debts).

6 – Know when to reach out for some professional help.

Sometimes, despite people’s best efforts, it just may not be feasible to climb out of serious debt without the help of a professional.

If you are finding that your efforts to reduce your debt are getting you nowhere – or that your debt seems to be growing even though you are doing your best to pay it down, reaching out for professional debt relief help can be the best way to:

  • Stop your debt from continuing to snowball
  • Avoid creditors’ punitive actions, such as wage garnishments and repossessions
  • Getting the assistance you need to get your financial situation back on track.

Colorado Springs Bankruptcy Attorney at the Law Office of Jon B. Clarke, P.C.

Are you struggling with debt and ready for a financial fresh start? If so, it’s time to contact the trusted Colorado Springs bankruptcy attorney at the Law Office of Jon B. Clarke, P.C.

To find out more about your best debt relief options, as well as how we can help you obtain the financial fresh start you need and deserve, contact us today by calling (303) 779-0600 or by emailing us using the contact form on this page. We also encourage you to complete our Business or Consumer Debtor Analysis Form so that we can provide you with professional advice that is as specific and helpful as possible.

From our offices based in Denver and Greenwood Village, we provide people throughout Colorado with the highest quality debt relief legal services.

Categories: Debt