Are you in the bottomless black pit of
Debt Reduction and unable to climb out? You’re not alone.
Many Americans find
themselves in debt every year, but on that same accord many are able to get out
of debt and even improve their credit rating in the process using some of these
tactics:
#1. Contact
your lenders
Don’t be too prideful to ask
for help. The biggest thing you can assume is that your creditors don’t care
about you paying back the debt you owe. They want their money back just as much
as you want to pay back your loan – and they're willing to help you, and maybe
even give you some breaks in order to see you pay it off. If you know you’re
going to miss a loan or credit card payment, call your lenders and explain it
to them. Many times they will understand that an emergency has popped up – you
lost your job, you became ill, or you had another financial emergency that
affected your ability to make a loan payment this month. If this is the first
time you’ve missed a payment, chances are they will be understanding and maybe
even cut you a break by reducing your interest rate because you actually called
to explain your situation.
#2. Consolidate
your debt
If you can consolidate, or
pay off, all of your existing debts –
including your student loans,
mortgage, personal loans, and credit card debt
– into a one-payment
consolidated loan with a low-interest rate. There are pros and cons to debt
consolidation, however, if you can consolidate your debt with a lower interest
rate it may be worth it.
#3. Curb your spending
and borrowing
These ones give in, but many
still have trouble paying back debt because they are spending on unnecessary
things they don’t need or going out and getting more credit cards and personal
loans that they don’t need. My rule is to never borrow more than you know you
can pay back. If you’re in financial difficulties due to multiple credit cards,
do yourself a favor and cut the excess – get rid of credit cards you don’t need
by paying off the balance and shutting the accounts for good. If it’s too
tempting having the plastic in your cut up a few of the cards you don’t need.
#4. Budget your
loan payments
Tackle your debt like you
would raise money for any holiday or car – with a strict budget! Put an extra
bit aside each month to pay down your loans. Start with the loans with higher
interest rates and work your way down to the ones with lower interest rates.
#5. Consult a
credit counselor
If you don’t have the
discipline or knowledge of how to pay off your credit debt then arrange to meet
with a financial advisor (credit counselor) to work out a repayment plan.
Credit counselors come in handy because they will actually negotiate with your
lenders to work out a lower interest rate on your loans. They will help you
budget for making regular monthly payments and offer you tactics to help you
rebuild your credit rating.
For more information on How
to improve your credit score read our Guide How to Improve Your Credit
Score
#6. Stop
spending on high-interest-rate credit cards
In fact, if you have multiple
credit cards there is no reason to keep the cards with the higher interest
rates. They are nothing but temptation. If you have cards with lower interest
rates why wouldn’t you be putting all of your purchases on those instead of on
your higher-rate credit cards? You can also use lower-rate interest rate credit
cards to your advantage by transferring the balances on high-interest-rate
cards to these in order to pay off your outstanding debts at the best rate
available to you. Just remember to read the fine print on your lender's
agreements to make sure there is no penalty fee for transferring balances from
one credit card to another.
#7. Avoid
temptation when you can –
You might not believe it, but you can leave your credit
card at home if you don’t anticipate needing it. Oftentimes you will be tempted
to spend more because you have the option of credit in your pocket, but if you
leave it at home you will be forced not to overspend and use disposable cash
instead. If you know you can’t afford to pay off a credit card bill with the
purchase at the end of the month you shouldn’t buy it.
#8. Reduce your credit card limits
Just because you’re offered a
$3000 credit card limit, doesn’t mean you have to accept it. If you’re a person
who abuses credit, it might be wise for you to call your credit card company to
have them reduce your credit card limit. Remember you have control over your
credit cards, and just because your credit card company raises your limit,
doesn’t mean you can’t call them and tell them you don’t want it increased.
#9. Budget your monthly purchases
Curb your spending by making
a budget and sticking with it. Include all of your essentials – your rent, car
payment, gas, utilities, phone and internet services, laundry, hygiene items,
and others. Then come up with a disposal amount of cash that you can afford to
spend each month. The key is not to go overboard.
Credit
Repair Ease makes
it easy for people looking for the best local credit repair services provider.
We are available in 51 states of the United States and are committed to
offering you the best credit repair service. Whether you live in Florida, California, Texas or New York,
or any other state of the United States, we help you from your location and
you don’t have to take much burden.
Just
Call Us To Start Now! (888) 803-7889
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