It is so easy to get in over your head with debt and so hard to reduce that debt to livable levels. It helps to get trusted help in reducing debt and the stress associated with it. Seek a plan and sound advice to be successful in reducing large amounts of debt. Debt has a huge cost in interest and late charges that make it harder to pay down credit card debt and loans. If you are so in debt that you can only pay the minimum required on each card or loan each month, you will take a very long time to pay the debt off and the interest charges will shock you.
Get Help to Pay Off Credit Card Debt
National Debt Relief is a company dedicated to helping people pay down their debts. There are several ways they have developed to help people buried in credit card debt.
They have developed a series of calculators to assist people in staying on top of their finances such as developing budgets, determining the best payment amount to make each month, keep track of finances, and more. The calculators can be customized for each client.
They offer the option of debt consolidation loans. They have a calculator to help people decide if this option is a good solution for them.
This company can help clients form the right strategies to pay off their debt more quickly. Paying off credit lines and cards sooner can save thousands of dollars in interest.
There is the possibility of a home equity debt consolidation. A calculator is available to help clients determine what the monthly payments would be and if this is the right solution for them.
A person buried in credit card debt might not know the total debt. It is helpful to calculate the total debt to formulate an effective payment plan. When a person knows the total they owe, it may be possible to contact debtors and negotiate interest reductions or special payment plans.
Paying Down Debt Requires Sacrifices and Lifestyle Changes
Getting help with credit card payment plans is not enough by itself. If a person does not change the behaviors that led to the debt crises, it will not go away. People drowning in debt might have to make major changes to improve their financial picture. What a family must do depends on the debt burden and how serious they are about getting their debt under control.
In addition to getting help from community non-profit debt reduction services, or a commercial debt reduction company such as National Debt Relief, the person or family in serious debt might need to consider these strategies.
If the family or person has multiple vehicles, they should consider getting rid of one costly vehicle. A single person with a vehicle, living in a city with public transportation might drop the only vehicle and use that public transportation, walking, or biking to get places. Vehicles are expensive to operate, and most have car payments attached to them.
Decide to share the apartment or house with a roommate. This step will cut housing costs and free up money to pay off debt. But it is not a step to take lightly. Choose the roommate carefully considering living habits, compatibility, and finances. It is important to vet any potential roommate by checking references and employment. Review their credit history with their permission. You want to make sure they will pay their rent and be safe to live with.
If the family purchased a home at the top of their budget and is stressed with the amount of house payments, selling the house and moving to a more affordable house may be an answer. A smaller home or the same size home in a less-expensive neighborhood will free up money to pay down debts. This must be a family decision since it affects all family members.
Adjusting a person’s social life can be difficult, but very helpful. Drinking in bars and expensive nights out with friends can wreck a budget and wrack up debts. By eliminating excess eating out and visiting bars, a lot of money can be saved. You don’t have to ignore friends. You can invite them for dinner at your home or to group activities during the day that are less expensive.
Use free time to earn extra money with an additional part-time job, overtime at work, or starting a side business. You can get good at selling unneeded belongings online or at yard sales. There are a lot of ways for the willing to earn extra money in honorable ways based on abilities.
Make getting debt reduced a more important part of your life. Make a list of all the debts and monthly payments you are obligated to make. Figure out what to give up to make all the payments every month. Spend time finding ways to save money and reduce spending. Spend less money on clothing, shoes, and jewelry while debt is a problem. Cut back on expensive hobbies and events.
Put all those credit cards in a desk drawer until the debt is under control. Call the credit card companies and make payment plans based on your not using the cards until the balance on each account is paid off. As the cards are paid off, cancel all but a couple of them.
Better Money Strategies
When you are trying to pay down those credit cards, consider these strategies. Pay at least the minimum on all credit cards each month, but pay extra on cards with the smallest balance to get rid of that payment, or pay extra on the highest interest cards.
Consider paying a few dollars more than the minimum payment on each credit card each month to save on interest charges and get each card paid off sooner. Don’t use those cards as you are paying down the balances.
Consider ways to combine the credit card debts into one lower interest debt. Some credit cards will allow you to transfer debt from other higher interest cards to theirs. Be aware of transfer rates and costs. Cancel the card that you got rid of the balance on.
Another way to combine debts is to take out a home equity loan. This only works if the new loan has lower interest rates and if you make the payments on time and do not add to the old credit cards. If you use those credit cards and accrue more debt, your situation can be worse than before.
When it comes down to reducing debt, the only true way to owe less is to spend less, earn more, and pay off the debt faster to get rid of it sooner.
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