Getting Out of Debt

If you're spending too much on repaying debt every month, you need to take a few steps to become debt-free.

Pay off the debt with the highest interest rate first.

Pay the minimum required on low interest debt and pay as much as you can towards one high interest debt until it is completely paid off.

If you have a 401k plan, you can loan against that. Your rate is lower and you pay yourself back that interest. Not the bank.

If you can borrow money at a lower rate to pay off a higher rate debt, then you may save money. Just remember that a lower rate and a longer term may end up costing more than a higher rate and shorter term.

Set up a budget and cut back on as many unnecessary items as possible.