How you can start to get out of debt today
You may very well know that this is something that requires time and consistent payments to lower that balance, but you are more than capable of making it happen as you put these tips into practice.
Pay More Than The Minimum
Decide on paying more than the minimum payment. This will save you from giving the bank more interest on your money. Come up with a plan of action for your situation on paying more than the minimum requirement. No matter how much more over it is, it will pay off over the longer period.
Check out credit card payoff calculator. Play around with your numbers to find a better on saving you money.
Debt Snowball Effect
The concept of paying off your smallest loan first. Say you have a credit card balance of $4,000, auto loan of $1,000, and student loans of $45,000. The idea of eliminating the auto loan first creates a snowball effect into motivating you to focus on one of these at a time. Eliminating the smaller amounts first will be faster to get rid of and provide you with momentum.
Refinance
Refinancing debt to lower interest rates can save you hundreds if not thousands. A debt consolidation loan can offer lower interest rates which comes in the form of a personal loan that you can use to pay off multiple unsecured debts. Talk to your bank on refinancing options moving forward. Consider their options along with others on refinancing solutions to make the best decision for your situation.
Debt Settlement
You can negotiate to settle for less than you owe on your debts. There are third parties who negotiate on your behalf and advise you to stop making payments on your debts in the process to create leverage for yourself. This can also back fire and hurt your credit score so take precautionary measures.
Bonus:
Good Debt
Good debt is when you borrow money in order to buy assets. This money is strictly used towards buying things that will generate you more money in return. This is in the form of any passive income or income generating stream you can think of.
Use these tips to decrease your debt and to increase your income. Take this one step at a time to get yourself out of debt and into taking on good debt to accumulate your assets!