Jullian one of our readers was debited with amount of $15300. She was able to dig herself out using the tips she learnt on website Consumerist.com. Here we will share all those tips she followed to lower her monthly expenses and how she managed to dig out of the debit within 20 months.

She writes: “This morning I made my very last payment on $15,300 in credit card debt and a personal line of credit for a home improvement project that was completed a few years ago. I paid it off over the last 20 months thanks to applying some of the stuff I learned at consumerist.com. It was tough. It took discipline, but I did it!

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Using credit card is not bad as long as you know that you have enough cash to pay back the debt in time. But it is completely useless to carry on a great amount of debt that you can’t pay off. But as it is said, one learns from his mistakes, and so here is a formula to get out of debt.

To pay off the debt, you need two things, first a method to pay it off, and second a madness to achieve the goal set. But first decide upon the method; there are two methods, i.e. the snowball method and the Highest-interest first method.

Snowball Method

For the snowball method, all you have to do is:

• Pay the smallest amount of monthly payment for all debt
• Find out areas in your budget on which you can cut back to repay your debt.
• Take the bill with the lowest amount and pay the minimum and the extra on that bill until it is paid off.
• After you pay that bill, take the money you were saving for that bill to the next minimum bill and repay that.
• Repeat the process until all bills are cleared

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