Suze Orman's Ten Debt Repayment Tips

By Michele Lerner
Mortgage Credit Problems Columnist

Suze Orman's many books, including "The 9 Steps to Financial Freedom", offer in-depth suggestions for debt relief. Whether you are looking for debt consolidation as a way out of credit card debt or simply want to improve your credit so that you can qualify for a home mortgage, her ten tips can start you on the path to debt relief.

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In addition to Orman's recommendations, you can also enter your information on this page for debt help to see if a debt consolidation loan can solve your credit problems faster.

Ten Tips for Debt Relief

  1. Cut up all your credit cards now except for one that you will save for an emergency. Don't carry this card in your wallet.
  2. Always pay more than the minimum payment every month, in fact, you should pay as much as you possibly can to reduce your debt faster. Now that the CARD Act has passed, credit card companies should show you on your bill the difference in interest payments between paying the minimum and making a larger payment.
  3. Pay off the credit card with the highest interest rate first. Pay the rest in descending order by interest rate.
  4. Negotiate with your credit card company the best possible interest rate, even if you have to switch credit card companies every six months.
  5. Understand how your credit card works - the fees, grace period, how you are charged.
  6. Honor all debts equally, including money you owe family members along with credit card debt.
  7. Once one credit card debt has been paid in full, apply the money you have been paying that company to pay off another credit card. Continue this pattern, always paying the debt with the highest interest first, until you have paid off all your credit card debt.
  8. If you are struggling to handle your debt, call the Consumer Credit Counseling Service at 800/388-2227. They can help you with debt consolidation.
  9. Do not let yourself get into debt again.

10. After you finish paying off your credit card debt, apply the money you have been using to make the payments to saving money and investing in your future.

Regardless of the reason you find yourself struggling with credit card debt or bad credit, you can take steps immediately to resolve your debt problems. Try Orman's steps and enter your information on this page to find out your options for debt consolidation.



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