Dealing with Your Debt
Debt, the cursed four letter word that it is, carries a different meaning for each of us. Therefore, there are different solutions for resolving our debt based upon our needs and various financial situations.
Here are some basic strategies you can use while working on getting yourself out of debt.
1. Develop a monthly household budget and stick to it. Include all of your debt and structure your monthly payments into your budget to ensure all of your responsibilities are take care of.
2. Work out repayment plan directly with your creditors. Some may reduce your interest rates, stop over the limit fees.
3. Try the Debt Reduction Snowball Method. This is where you take your highest interest account and make as much over the minimum monthly payment that you can and still continue to make your minimum monthly payments towards your other accounts. When you pay one off you take the same monthly payment you were making and apply it to the next creditor along with the minimum monthly payment and continue to do so until all accounts are paid in full.
4. Stop using credit cards for your regular day to day transactions.
5. If you need additional help don’t be afraid to seek out Credit Counseling. Make sure to do your homework and check with the BBB (Better Business Bureau) along with trade organizations such as AICCCA (Association of Independent Credit Counseling Agencies) to ensure you are working with a reputable organization. A Credit Counseling service may help you lower you monthly payments, stop late and over the limit fees and reduce your interest rates.
Taking action now may have a profound impact on your financial future.
If you have any suggestions or stories on how you’ve experienced relief from credit cards and other debt feel free to share in the comment section below. Tips, tricks and other suggestions are always welcome!