Eliminate or get rid of debt concept , Silhouette man pushed off debt wording a cliff with blue cloud sky and sunlight.

Yes, there really is such a thing as good debt. Any financial obligation that helps you make more money is considered good debt. Everything else falls under the category of bad, or unhealthy debt.

However, there are ways you can eliminate unhealthy debts, such as avoiding taking more debt, living according to a spending plan, and taking a personal loan to consolidate the debt.

Here are some suggestions for eliminating unhealthy debts.

Stop Amassing More Debt

You will always find yourself in a cycle of debt when you constantly get loans to pay existing ones or spend on your expenses. If you already have debt, create a clear plan on how to pay it without exhausting your income. You can achieve that by lowering your expenses and trying to pay the existing debt.

Find Additional Money to Clear Off Your Debt

Interest charges can become overwhelming when you take too long to clear your debt. You can avoid higher interest by paying larger amounts monthly toward your obligations. To accomplish this, look for ways to increase your income. Going over your budget with a fine-toothed comb can help you find “extra” money too. Look for subscriptions you no longer use. Stop buying coffee at expensive chains. Take you lunch to work. Eat out less often — it all adds up.

Talk to a Credit Counselor

Consulting a credit counselor is always a good idea when debt has become an issue in your life. These people can help you in a number of different ways, including finding money in your budget to help pay off debt faster and — if it comes down to it — taking over the payment of your debts altogether.

Credit counselors will negotiate with your creditors to try to get your interest rates lowered and fees waived to make your debts easier to clear. It works in a whole lot of cases.

Consider Debt Consolidation

Balance transfer cards can be useful in this regard. You’ll move your balances with high interest rates to a card with a lower interest rate or no interest at all for a limited amount of time. Just make sure you can pay off the whole balance before the grace period runs out.

Consolidation loans and personal loans are good for solving this problem too. You’ll find more about them at https://www.bills.com/.

A home equity loan also works for this purpose when you own your home. You may consider refinancing your mortgage to get cash to clear the unhealthy debt. The big benefit here is the lower interest rate it provides compared to most other types of debt.

Just make sure you can pay it off, because you’ll put your house up as collateral to get this loan. This means you could be forced to sell your house if you can’t repay it.

Negotiate for Lower Interest Rates

Call your creditors and ask them to lower your interest rate. It’s a long shot, but it can work if you can demonstrate financial hardship. You might also consider hiring a company like Freedom Debt Relief if you’re having trouble managing your debt load and can’t see your way clear.

They’ll negotiate with creditors on your behalf for a lower payoff amount in exchange for a one-time payment in full of the amount they agree to accept to call it done.


Paying off your debt may sound easy but it is not. But once you make a plan for eliminating unhealthy debts and stick to it, achieving financial freedom is just one step away.