Getting out of debt without borrowing money might sound like a gargantuan task, but there are many ways to do it. The key is to be aware that it is something you can’t do with the blink of an eye, as it takes good amounts of patience and discipline.

Does this sound like something impossible or something that would take the strength that you don’t feel you have? Here are some very effective tips to get rid of debt without creating more debt.

Do not ignore pending payments

Any debt should never be avoided. You must tackle debt and not brush it under the carpet as doing so is a way of not accepting reality and deceiving yourself. Being in debt should never be normalized, and what you have to accept is the fact that you need to take action and face it –either with the help of an expert or by yourself.

Determine how much you owe

The first step to getting rid of debt is to calculate how much you owe every month. Once you do that, you would want to crack a personalized plan with a set of strategies to tackle each one of your debts.

Determining the amount of debt must be done by factoring in fixed expenses such as electricity, water, or gas bills, and then cross out those expenses that are not essential so you start saving money based on what is strictly essential.

Be very careful with the use of credit cards

When used correctly, credit cards are a useful tool for building credit. Each month, credit card companies report consumer payments to credit bureaus. If you always make your payments on time, you can build good credit.

With credit cards, always try to pay more than the minimum payment requirement. If possible, pay the balance in full each month and always check your monthly credit card statements to make sure you recognize all transactions.

Call your credit card companies periodically to negotiate lower interest rates, especially if your credit score has improved since opening the account. However, the best piece of advice to get out of debt without borrowing is not to use credit cards unless it’s an absolute emergency.

Develop a strategy on how I can pay off my debts

Creating an expense record is a great strategy for an effective debt plan. This way, you will know what to do, when, and how to settle the pending payments, because you’ll have a clear and concise approach to the situation.

If you don’t bear this in mind, you’ll expose yourself to making the plan much slower and more complicated.

I recommend using the snowball effect. That is, organize debts by date and attack those with the least time remaining. Later, continue with the second one on the list and so on until each and every one of them is terminated.

Another way is to bet on the waterfall effect. In this case, you must first take care of the debts with the smallest amount, including those with the maximum payment due.

Curb debt accumulation

When you implement the debt plan, it is essential not to continue accumulating more debt. As mentioned, getting rid of credit cards and reducing unnecessary expenses is feasible. Above all, we must always bear in mind the importance of not continuing to increase the final debt.

Establish an emergency fund

In an unexpected situation, it is advisable to have an emergency fund. This way, you can face debt without adding more spending. For example, you may have an appliance drain, a car accident, or an unexpected trip. If there is no such fund, the risk of not having money to pay will be much higher. For this reason, I advise accumulating part of the income month by month for this purpose.

Put yourself in the hands of experts

Professionals have the necessary resources to apply an advisory service. This means that they help individuals, small businesses, freelancers, or over-indebted families to renegotiate their credit debts, mortgages, or credit cards. To do this, they study the cases and analyze the financial situation carefully. The objective is that you apply to the best option.

Author's Bio: