Eliminating your debt is a daunting task. What can you do to get out of debt fast? Negotiation alon with proper financial responsibility is your foothold out of the rat race, believe it or not. Learning how to get rid of your debt may be one of the most important life skills that you learn because it can bring you happiness and fulfillment. In order to successfully eliminate your debt, you must use a combination of self-control, proper negotiating skills, and some future planning.

Here Are Some Tips

  1. Chop em up or freeze em. Begin by taking all your credit cards out of your wallet/purse and slice them up into pieces. If youre one of those people who make the claim that you might need those credit cards in case of emergency, then a unique strategy is to freeze your cards--literally. Put the credit card into a paper cup and fill the cup with water and then freeze it. You wont have immediate access to the credit card and it will still work for you in case of emergencies. However you choose to get rid of your credit cards, make it a symbolic ritual of your commitment to get out of debt.

  2. Start living within your means. Youll be amazed at how much money can slip pass your fingers on small daily purchases. Start living within your means by using cash for the items that you must purchase. You should begin looking for the cheaper items. Remember, brand names does not always equate to being a better product. Big businesses count on the fact that you are going to toss them your money without question, so dont make it so easy for them. Use coupons wherever you go. Buy in bulk to reduce costs. Learn how to cook. The ways to save money are endless. Just bring to mind that living within your means does not mean you have to live poor, it just means you have to live wiser.

  3. Consolidate all your high-rate credit cards. First check out the maximum credit limit and APR on all your credit cards and pick the one with the lowest APR and consolidate your other credit card balances onto that one account. Make sure that there are no hidden fees associated with the balance transfer. A different method is to negotiate a loan that gives a lower APR than what you're currently paying and pay off your high interest cards with that loan. Just be very cautious about the fine print due to the fact that many credit card and loan companies will offer a low introductory APR, but once that is over, they jack it up through the ceiling.

  4. Invest in your debt. Many people who are stuck in debt still pay quite a bit into their mutual funds or stock portfolio thinking that they will get a higher rate of return. In most cases, this will never take place. Annual APRs for credit cards are a whopping 24% or more. I've yet to see a regularly performing stock or mutual fund that turns out even 15% on a regular basis. Treat your debt like a high-interest investment one where you are certain to earn a huge rate of return. Before you put money into investments, always invest in your debt.

  5. Use a trusted family member or friend. One of the best ways to get out of debt is with the help of a financially stable family member because they will usually give you the cheapest deal on a loan. Get an IOU agreement in writing and pay them a predetermined amount monthly. Some people decide not to go this route due to pride, but it may be the fastest and cheapest way out of debt. Just be sure to possess the integrity and honor to repay your debt to them otherwise you will have more issues than just financial ones.

  6. Dont get suckered into taking more debt. A dirty negotiation tactic that loan companies like to use is to offer you more of a loan than you need to pay off your debt, thus putting in more debt onto your existing debt. This tactic works the same way as when a child brings a stray puppy home and asks, Can we keep him? The credit companies know that there is a large deal of emotional attachment to that extra credit and they are betting that you are going to take that stray puppy home with you. Resist the temptation to take that extra credit home with you because it will cause more problems than it is worth.

  7. Kill the smaller vermin first. If you have several debt accounts in various denominations, then attack the smallest debt first with full force and kill it as quick and as painlessly as possible. Once that debt is gone, then use the newly freed savings from the last debt and apply it towards killing the next largest one, and so forth. This is an easier and more effective way of eliminating debt than paying small amounts off of each loan. It also has the psychological benefit of boosting your motivation with each growing achievement.

  8. Stay busy. Its a well-known fact that if you have too much free time on your hands, you're more likely to spend money than if you were busy. Take up some recreational activity to keep you occupied so that you dont have that free time to go spend your money.

  9. Set up an auto-pay system. There is a ridiculous amount of money to be made on late fees and finance charges. Credit card accounts spiral out of control because individuals see that they don't have any monthly minimums dues and let it roll over to the next month. The credit card companies love this because you've just given them extra money in the form of finance charges to your account. Regularly pay more than your minimum to avoid debt. Avoid handing free money over to companies who charge you for late fees by setting up an EFT or automatic bill pay system so that you wont have to deal with writing the checks, finding stamps, and mailing the bills every month. Having an automated system do this for you will be certain those bills get paid promptly.