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Here's how to get out of debt, according
to Stacy Johnson,
author of the book "Life Or Debt: A One-Week Plan For
A Lifetime Of Financial Freedom."
- Curb spending. First and foremost, be able
to account for every dollar you spend.
- Cancel credit cards. Cut up all but one or
two credit cards so you can start paying them
off.
- Only keep credit cards with the lowest
interest rates and no annual fee.
- Track where your money is going every month.
Cut back on all those extras, including services
for call waiting or extra cable channels.
- Look for lower rates on car insurance, phone
or Internet service.
- Pay cash if possible. Paying of merchandise
over time can cost you triple, once you factor
in interest and late-payment penalties.
- Don't borrow money to pay off debts. Home
equity loans can put you even deeper in the
hole.
- Make a list of your debts, then pay them off
in order of the fastest possible payoff. Get rid
of the small ones first and always pay more than
the minimum required.
- Pay off outstanding car, bank and mortgage
loans quicker by doubling up on payments and
attacking the principal amount.
- Call your creditors and ask if they'll
discount what you owe. If you can offer a
lump-sum payment, they'll sometimes settle for
as little as 50 cents on a dollar.
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