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Congratulations to you! I say that because if your reading this, you are serious about reducing your debt load. You may have been displaced over the last few years and your income suffered, you lost your job, or even your home. If you have been frustrated about your situation, there are solutions. Being consumed by debt is daunting, every time you look around, get a few dollars in your pocket, you feel like where does it go?
Here is a plan – you can see results.
1. Think it through – Debt exists because credit is used more than cash. Next time you get another credit line, use it wisely. If your already in the hole, pay off what you owe first. Credit cards and lines of credit are for emergencies, not daily use.
2. Stay out of the stores! – Buying when the mood suits you is a major mistake. Whether its in the malls or online, spending just to spend never amounts to anything more than maxed out credit cards and overdraft fees on the debit cards.
3. Build a budget! – Yes, it’s the one thing, most people hate to do, is budget. Believe it or not, a budget is a guide, a plan to use a certain amount of money to pay a certain amount of things. Its just that basic. You must get a clear view of how much is outstanding to your obligations – get clear on who is owed what. From there document it, dates due , amounts due, etc. Even document your extra spending. This stuff like the drive-thru stop at McDonalds.
4. Get focused on tools available – Find low interest rate loans, credit cards to move high balances. A lot of banks have great rates for balance transfers. Keep a close eye out for annual fees too. Sometimes a low enough interest rate is worth a small fee to get those exclusive offers.
5. Get your tail in gear! – Don’t procrastinate. Be about slashing your debt load TODAY, not tomorrow. Put that plan in motion. Don’t let anything stop you.
6. Credit cards are your friend – Do not close your credit lines! Bad move, keep everyone of those accounts open, it will limit your options and stop continued positive payment history.
7. Remain in control of your credit – Pay all obligations on time. Pay the full amount due by the due date. Do not be late on credit cards, banks will close you if a pattern of late payments is identified.
7 Super Easy Ways to Tackle Debt
1:56 PM
Alexis P. Jones, The Credit DIVA
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2 comments:
A lot of people spend without any qualms on how to return payments. The whole concept is actually that simple. I’ve seen people buying a big house, a car, etc, knowing that they’ll have trouble paying back for the next 20 years given their current financial situations.
And the debt crisis hits and they lose their jobs. Then they start looking for a cure. As a financial advisor, it’s actually quite frustrating to see people spend without thinking.
I use to procrastinate a lot on credit payments due to my hectic schedules, which cost me a lot of unnecessary trouble and charges with those interest rates! I recently switched to debit cards to avoid the interest rates and to keep my payments on track. It also forcefully restricts me from spending on something I blatantly can’t afford.
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