Debt-snowball technique

• 1). List all of your balances in order from smallest to largest.
  
  
• 2). Increase the payment on your smallest balance to the largest amount you can afford while still taking care of basic necessities. Necessities include food, shelter, clothing, transportation and utilities.
  
  
• 3). Make minimum payments on all other balances.
  
  
• 4). Once the smallest balance is paid off add the amount that was being applied to that balance to the minimum payment of the new smallest balance.
  
  
• 5). Repeat this process until all debts have been paid off.
  
  

Financial Counseling

• 1). Explore the possibility of financial counseling. Financial counselors---or coaches---can assist with household budgeting, discovering ideas for producing extra income and establishing the fastest way to eliminate your debts. Many financial institutions offer such services to their customers, while some companies exist solely for the purpose of providing financial counseling. Counselors in any setting will help you focus on raising your household income; setting monthly spending priorities; and sequencing your debt payments for maximum benefit.
  
  
• 2). Contact your bank or credit union and ask to speak with a financial counselor.
  
  
• 3). Consult an independent financial counseling service. Some services provide counseling free of charge, while others require a fee.