If you don’t want to spend the whole of next year in debt, then you need to try and come up with a plan now. Quick action is crucial if you want to make the most out of the money you have and it is also crucial if you want to try and avoid having too much of a financial burden. If you want to help yourself here, then it all starts with gathering data.
If you want to get out of debt, then you need to know where you stand. You need to have a complete picture. This could include your recent bill statements for your credit cards as well as your student loans. Your credit score will also help you to determine whether or not you are eligible to lower the interest rate you have. If you want some help with your debts then remember that there are lawyers out there, that include Rockwell Legal Group that can help.
Make a List of your Debts
Once you have all of your data in hand, you need to then make a list of all of your debts. You need to make a list of your creditor’s name, your balance and your monthly payments too. At this point it is also very helpful for you to take note of your interest rate. Next, list exactly how much you have to pay in order to get your debts down in the next year, or even three years. Remember that you need to include any items that may not be listed on your credit report. This can include your family loans, your medical bills and any groceries too.
Lower your Interest Rates
Interest on loans or even credit cards can easily make getting out of debts seem like you are running a losing race. The more that you owe, the more interest you will be charged and therefore, the more you will owe. The cycle then continues again. If you find yourself with tons of credit card debt and you don’t believe you can handle it all then one way for you to get around this would be for you to pay less interest if possible.
Getting a Low Interest-Rate Credit Card
Depending on the credit rating that you have, it may be that you qualify for a card that has a way better interest rate. If you can, you may want to try and take out a 0% credit card. This will come with an introductory rate and it will also help you to get yourself out of debt faster than before. If you are concerned about taking out a new credit card, then this is understandable. You do however need to make sure that you do everything you can to try and take out a card that has a low cash limit. This will stop you from piling on the debt even more. When you have cleared some of the debt on your own cards, you can then lower them so that you are not able to get into this amount of debt again.