If you owe a higher amount of money than what you make every month, it might be intimidating. However, there is a solution that can help you get out of this debt trap and relieve your stress. These cost-cutting steps can assist you to reduce your monthly expenditures which would offer you more money that you can utilize towards paying your debts. Patience is the key here and you would gradually get rid of all your debts. Just follow the simple steps given below that would help you know how to pay off bills and can show you the path towards debt independence.
Some Useful Techniques To Pay Off Bills And Get Rid Of Debt 
Work out the overall amount that you’re obliged to pay all your creditors. Then divide the overall amount due (taking interest into consideration) by the number of years you intend to take for paying all of your debts (for example, $200,000/10 years = $20,000 yearly/12 months = around $1667 monthly). This would provide you a clear idea about what you have to pay on a monthly basis besides your day to day living expenditures for the purpose of paying down your total debt by a stipulated date. Living expenditures incorporate items like utilities and fuel for your car. In the instance given above, the debtor intends to pay a debt amount of $200,000 in 10 years. He would require $1667 besides his day-to-day living expenditures and other various expenditures to attain his objective.
You should not make needless purchases such as boats, video games, shoes and garments. You should keep in mind that your objective is to become debt free and not to fall back into debt. Destroy your credit cards or discontinue them. If you can’t afford to make cash payments, don’t buy anything.
Devise a practical budget. Determine what is not essential for your daily living that would save money that can be used for paying down your debts. Stop going to watch movies every month. Cut off your coupons. Join a carpool and save on your fuel costs. Carry your lunch rather than eating out. Do your shopping at a departmental store to avoid numerous trips to save fuel. Fix and apply a programmable thermostat for air conditioning and centralized heating and this would help you save 10% on your utility bills. Have a water filter at your home to save the expenses of purchasing mineral water bottles.
The funds that you can save every month by lowering your leisure expenses or eating out and so on must be utilized for paying off your high-interest credit card debts and other debts faster. As soon as you pay off a debt, utilize that money for paying down another debt with a big interest rate. If you double the payment every month, it would allow you to repay that debt promptly. Continue with this plan till all your debts are repaid.
Contact your credit card companies and bargain with them for cutting down your interest rates and if you can, go for a balance transfer.
Look for fixed rate policies from your utility companies. Fixed rate policies offer savings on occasions when prices usually go up. This form of policy assures one rate for a particular time span. This offers you the sense of security that your utility bill would stay unchanged throughout that phase and this allows you to follow your budget.

Many Thanks to Jennifer Lohan for the above guest post.

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