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Let’s face it. Debt is no fun. It is a weight and burden most working-class people feel. Some people struggle with debt for a life-time if they fail to develop a strategy for how to overcome debt. It is imperative to have a plan if one wants to be released from the cold grip of constant debt. How do we formulate a strategy? Let’s consider it.

One of the most basic rules for getting the best of any quick loans or debt is to always pay more than the minimum required payment. In particular, credit card companies love customers who just make the minimum required payment per month. People who keep credit card companies enamored in this way cannot look to be free for 15 years or more usually. If your minimum payment is NZ $23.95, try paying an even NZ $30 instead. Not only will you get your bill paid off much faster, NZ $30 is much easier to remember each month than is NZ $23.95.

There is a strategy known as a snowball method for paying off debt. It requires you to reduce your expenses to a bare minimum to cover necessities and use a large block of income to attack your loans and debts. List these loans and debts from the most to the least. Pay the minimum monthly payment on the more ominous amounts owed and concentrate most of your block payment on the easiest debts to pay off. Doing this will give you a psychological victory as you conquer one debt at a time, giving you the feeling that progress is being made. After your debt or loan is done, concentrate your resources on the next most oppressive loan or debt. You just go up the chain like this till all of your loans and debts are cleared.

Here is a good explanation of the snowball method:

Besides these common-sense payment methods, do not forget the income side of things. In the Internet age, there are always ways to boost your income and throw these resources into the fight against debt. Thee are Web Sites out there like TaskRabbit that can be used to secure temp and casual work for payment. You can sell your excess goods that are never used on E-bay. Try finding seasonal work as it becomes available, especially around Christmas-time. Make certain that the one-time or unexpected payments you may get are enjoined in the fight for debt freedom.

Be sure to ask credit card companies for lowered interest rates. This can only help and not hurt. If your payment standing with the particular credit card company is good, it is very possible that they will accede to your request. If they say ‘no,’ transfer your balance to a lower interest credit card or to a temporary low or no-interest card. Doing all of these things together can save you years in debt bondage.