More and more people are stuck in debt, not just one debt, but several piled up debts.  These debts include medical or hospital bills, credit card bills, mortgage loans, personal loans, etc.  You may find this situation alarming and overwhelming, but there are ways on how you can eliminate them quickly, and this does not include the bankruptcy option.  Below are several ways:

1.    Avail of Transfer Balance

If you are maintaining several credit cards and you can’t stop the balances from rising because of charges and interests, then you have the option to transfer all of it into one single credit card that has the lowest interest rate.  Due to competition, there are already some credit cards that offer a very low rate of interest or even 0% interest within a particular period.  With this option, you are assured that most of the money that you’ll be paying will directly be deducted from the principal rather than from the interest.  If this is the case, you’ll be able to pay your debt much faster.  However, you have to keep in mind that there is a specific fee for this type of service and it is usually at 3% to 4%.  Another thing that you can do is to ask the credit card companies a favor if they can cut down the rate of interest applied on your account.  Some companies actually have a soft heart and they are very willing to grant your request.

2.    From Smallest to Biggest Strategy

This strategy suggests that you have to pay off your smallest debt and continue doing so for your other debts according to the size of their amounts until all of them are fully paid.

3.    Pay Big

If you have extra money, you can add it to your budget for the settlement of your debts.  Paying bigger amounts means your debts will be eliminated much quicker.  This is especially true for your credit card bills.  If you pay only the required minimum payments monthly, your debts will surely be a burden for many, many years.

4.    Debt Consolidation / Debt Negotiation

If you think the previous strategies are not effective, getting the services of a debt consolidation or debt negotiation company might be your best option.  In this kind of strategy, the company will negotiate with your creditors for lower rates of interest or a cut on the principal amount.  This can cut back your debts to as high as 75%.