Getting out of debt requires a lot of will power and can be quite difficult to do, but with the New Year coming up, it's about time you took some action to manage your debt and stay out of it.
Below are some tips to help you get started:
1.) Know everything you have to know. Don't avoid the topic when the time comes for you to find about about your debts. Don't just write them down - sort them out from largest to smallest Microsoft Excel or other spreadsheet programs will be your best friend, and some other information you could include are amount owed, interest rate on individual debts and name of the debtor.
2.) The next thing to do is to analyze - how much longer do you have to pay off your debts if you keep paying the same amounts you have been paying? Pay as much extra on the minimum as you can afford each month. Most people usually start by paying off the one with the highest interest rate, but some financial advisors recommend that you start by paying off the one with the smallest balance. Decide what's right for you.
3.) One of the most important questions you can ask yourself is if you can afford your current mortgage. If you've had a reduction in income or an illness that's caused you to struggle with your mortgage payments, call your mortgage company.
Many offer what's called a mortgage modification plan. This modification simply means you may qualify to have the terms of your original loan reworked-resulting in a lowered interest rate and lowered monthly payments.
Your living quarters can also use some downsizing if it helps you cut back on your debts, spending and daily expenses. This would just be a temporary arrangement until you are able to get back on your feet.
4.) Pay attention to your bills. It may sound like too much of a no-brainer, but believe it or not, there are people who don't bother to check their bills and just pay them as-is. Are you guilty of this every once in a while?
And it would be too late when you'd discover a few months later that you have been overcharged for a thing or two. Nobody wants to be overcharged for anything - they would rather use that extra money to pay a utility bill or something.
5.) Set aside some money every payday to place in your savings account. Even if it's only $20.
Awareness is the key to paying off your debt - be aware that you have debts to pay, then pay them off gradually. Don't let yourself see the situation as hopeless. Lean on your friends and family during times of debt-related crisis.
Below are some tips to help you get started:
1.) Know everything you have to know. Don't avoid the topic when the time comes for you to find about about your debts. Don't just write them down - sort them out from largest to smallest Microsoft Excel or other spreadsheet programs will be your best friend, and some other information you could include are amount owed, interest rate on individual debts and name of the debtor.
2.) The next thing to do is to analyze - how much longer do you have to pay off your debts if you keep paying the same amounts you have been paying? Pay as much extra on the minimum as you can afford each month. Most people usually start by paying off the one with the highest interest rate, but some financial advisors recommend that you start by paying off the one with the smallest balance. Decide what's right for you.
3.) One of the most important questions you can ask yourself is if you can afford your current mortgage. If you've had a reduction in income or an illness that's caused you to struggle with your mortgage payments, call your mortgage company.
Many offer what's called a mortgage modification plan. This modification simply means you may qualify to have the terms of your original loan reworked-resulting in a lowered interest rate and lowered monthly payments.
Your living quarters can also use some downsizing if it helps you cut back on your debts, spending and daily expenses. This would just be a temporary arrangement until you are able to get back on your feet.
4.) Pay attention to your bills. It may sound like too much of a no-brainer, but believe it or not, there are people who don't bother to check their bills and just pay them as-is. Are you guilty of this every once in a while?
And it would be too late when you'd discover a few months later that you have been overcharged for a thing or two. Nobody wants to be overcharged for anything - they would rather use that extra money to pay a utility bill or something.
5.) Set aside some money every payday to place in your savings account. Even if it's only $20.
Awareness is the key to paying off your debt - be aware that you have debts to pay, then pay them off gradually. Don't let yourself see the situation as hopeless. Lean on your friends and family during times of debt-related crisis.
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