Pay Off Your Debt
Anyone deep in credit card debt knows that paying just the minimum not only doesn’t get you out of debt, but also sucks you into a black hole of even more debt. Interests charges continue to feed the balance and eat your money.
And, in the same way that minimum payments don’t work, ignoring debt doesn’t work either. When you ignore debt, it becomes like a passive-aggressive friend; you may not hear a peep for a few weeks, but it will eventually roar its ugly head in the form of late fees, higher interest rates, and penalty fees, making for richer bankers. To really pay off debt, you have to live below your means while attacking debt with the remainder. Here are some ideas to get you started:
Well, this one seems to be a no-brainer, but many make the common mistake of failing to budget. In reality, financial discipline does lead to greater freedom. Begin by taking stock of the money you earn and all of your expenses. Do your expenses and debt re-payments exceed the inflow? If so, you are setting yourself up for a legacy of debt. Find areas in which you can cut back and apply that amount toward the debt. The process of budgeting might not be fun or entertaining, but it may reveal financial attitudes that have held you back. If so, seek to create a better a perspective on finances. This is the foundation for healthier money habits.
If your credit card has a high interest rate, you may benefit from transferring the balance to a card with a lower interest rate. This way, you can pay off the balance faster because interest won’t eat up as much of your monthly payment. Just be sure to read all the fine print so you know if the interest rate will change after any introductory periods.
Got too many debts to count? Snowball.
This option allows you to focus on aggressively decimating one debt at a time. While maintaining at least the minimum on all cards or loans but one, you contribute as much as possible each month to one debt. After this debt is paid off, you combine the amount that formerly went to now paid-off card with the current minimum on the next card, until the next debt is paid off. Keep repeating this system until all your debts are paid off.
Ask Family & Friends
If you are on good terms with family and friends, consider asking them to float you a loan to pay off some or all of the debt. This can be a great way to avoid costly interest payments (assuming your friends and family dont charge interest). If they do agree to this option, be sure to get all the terms in writing, and stick to repayment so that you don’t sour relations.
Still Bottomed Out?
If you’ve tapped every resource possible, still face a mountain of debt, and are possibly considering bankruptcy, you may want to consider debt settlement. Debt settlement will work to achieve a settlement offer with your creditors so that you only pay a portion of the payoff balance. Superior Debt Relief Services has over 10 years of experience helping consumers get back up after debt has knocked them down. We do not charge up-front fees, and our debt arbitrators are professionally certified.
Getting rid of debt once and for all demands time, patience, and sometimes help, but it is possible. Debt settlement may be an excellent fit for you.