Debt Reduction

The total consumer debt in USA is getting to the point of 2.5 trillion dollar, that’s why it’s hard to consider it being paid in a week or two. However every debtor can ease the repayment process by creating the strategy and following the plan.

For this you shall determine the average sum you can pay monthly without feeling any difficulties with daily spending for living. It’s perfect if the amount is a bit more than the total monthly payments on your credit cards, still it shall be less than maximum sum you can pay. Never try to create plan to the border of your capacity since this will only lead to breakdown should any unexpected case happen.

Choose two debts that disturb you most and put there as much money as you’re able to. You might be amazed on just how much you can really pay monthly when knowing the amount of debt and being concentrated on a few credits. A lot of payments are overwhelming, still pointing out two of them lets you see the sum reducing month after month. That is what gives you real strength to go on.

3 debt reduction strategies:

1) Snowball method

Here you start with the smallest debt and slowly get to the biggest one. The main idea here is to close credits one by one, giving you free financial space. This method will support your credit history since you get the marks of paying the long lasting credit accurately.

2) Credit transfer

This is an option for debtors having several credits in a single bank. You may move your credit from the account with high interest rate to the lower one. You can even ask for the card with 0% interest rate if it’s only the rate preventing you from paying off the debt.

3) Debt avalanche

This program means making an accent on the credit with the highest interest rate. This type of credit is the most dangerous to your financial state since it can grow significantly right after you miss a payment or two.

5 main steps to reduce your debt

1) Make payments to your lowest balance

This will help you see just how fast you’re closing your debts. You might have $100 or $200 balance which is easy to pay off fast, so after you’re finished with it you have one credit less to pay.

2) Put your spending on the limit

First of all pay attention to what you’re buying. Do not let yourself get lured into unnecessary shopping, instead try to minimize your spending. You can also get some additional money by selling the items you no longer use.

3) Do not use your credit card

Each time you’re using the card, your balance is growing. Use your cash money or debit card if you have one. Other way you will be reducing the balance on one card just by making it greater on the other.

4) Pay debts with high interest rates

After you’ve closed the smallest debts, direct your attention on the debts with highest interest rates. It’s important to pay them off first since they will be the first ones to grow into financial elephant out of mice.

5) Watch the smallest number of payments

If you’ve got the credit with 4-5 payments left, try to put there some more money in order to close it faster. This will give you the opportunity to proceed to other credits.

In order to reduce your debt you shall be careful with payments’ arrangement. Do not take too many credits at once, watch the interest rates and try to close debts by paying more than minimum to your accounts.

If you appeared to be in a tough financial situation, consider credit transfer or concentrate on the accounts with high interest rates. What you shall never do is to go on using the credit cards or open new credit line to pay the debt on the other one.


Contact Us

This email address is being protected from spambots. You need JavaScript enabled to view it.


505 North Euclid Street Suite 615, Anaheim, CA 92801

Company Information

Consolidebt is a debt relief referral company, which helps to pay off your debts in 12 - 36 months, in most cases. We will work with you, step by step, to simplify your monthly commitments, consolidate your monthly payments into one affordable monthly payment (on the date of your choice), and, depeding on the program, either disperse to your creditors on your behalf or work with you to settle your debts.