They set goals for debt elimination which only accounts for the principal. This debt elimination tip tells you two things: a) Pay more than just the minimum - If you intend to actually eliminate your debt then you have to make sure that you take the interest into consideration when you pay. The minimum balance required by most credit companies often just takes care of the principal, but it does not help to decrease the interest. Sacrifice for once in the use of your credit cards. It must be a rule posed to yourself that credit cards must only be for emergencies. If you are usually spending with the use of your credit card, do not be shocked to find your credit limit too high. The credit card companies are tracking your expenses so do not fall for this trick. This means that you will be able to slowly reduce all of your debts. However, this is not the main part of the snowball method of debt elimination and reduction. 3) Find out what is the extra amount you can pay - After you have made the minimum payments for all of your listed debts, try to find out if you can spend an extra amount to start paying off your smallest debt. Playing for a lesser interest rate in debts by means of debt consolidation can also appear to be risky so it is only proper to handle the issue with an utmost care. It is always wise for you to weigh things and consider all of the possible and available options that come your way. More so, some debt consolidation firms may charge really skyrocketing fees. You will also not be able to touch your assets, since you technically do not own anything. This is the reason why declaring bankruptcy should be the last resort in business debt elimination. What are the implications of declaring bankruptcy? Well, bankruptcy is an admission of defeat. You are essentially saying that there is no way you can recover financially. What increases interest? The answer to that is time. As long as you aren't able to pay off the principal debt, the interest will keep on increasing. With debt elimination, you will be able to stop this monstrous growth before it overwhelms you. You do not want to spend the rest of your life working to pay off a convenience.