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Do you want to know how to eliminate debt? First and foremost, you have to realize that you aren’t alone with your battle against debt. There are millions of people across the country who are in your exact same shoes and feel like there’s no way out. However, the fact is that there many different ways which can help you eliminate your debt once and for all.

When you own credit cards, you can be placed in a dangerous situation. For instance, you get laid off or your salary drops and you have no way to pay the bills. So what do you do? Most people in this situation will use their credit cards to pay their bills. Unfortunately, this can put you even greater danger than before, as you wont have the income to pay off the cards and your debt will continue to grow.

Debt can quickly turn into a downwards spiral with no way out. When you start paying your credit cards or other bills late, they up your interest rate and charge you even more fees. Logically, this should be the other way around, but it isn’t. If you’re having trouble paying your bills, you’ll probably only find it more difficult as time goes on.

To eliminate your debt, you have to first change your spending habits. This means you have to stop making impulse purchases and cut back on unnecessary expenses. Sure, going out to the bar or clubs with your friends is enjoyable, but is it really worth spending the extra $50 to $100 a week? The fact is that a lot people could gain 30 to 50% more income simply through budgeting and making smarter purchasing decisions.

Most of us have heard of the dreaded “B” word before. Bankruptcy is always an option, but it should only be used as a last resort. While you file for bankruptcy, you’re essentially telling your creditors you’re unable to pay them back, and while it can wipe your debt clean of most unsecured debt, it will tarnish your credit for at least 6 years. During that time, you probably wont be able to purchase a house, get a new car, take out a loan, or even get a credit card.

Instead of filing for bankruptcy, you should contact your creditors and see if they are willing to work out a more suitable payment plan with you. A lot of consumers in large amounts of debt simply avoid talking to their creditors. After all, they’re the ones who constantly call their phone all day and night trying to collect their debt. I recommend picking up the phone and talking to them. Who knows, you might be surprised at what they have to say. You don’t have to agree to anything right away, but just be honest and let them know how much you CAN pay right now. A lot of credit card companies and other credits are willing they are to work with you on trying to get you out of debt.