Drowning in Monthly Payments? 4 Tips to Get Back on Top
Living paycheck to paycheck can leave you feeling hopeless. Many people feel as if they are drowning in a pool of debt with no hopes of ever getting out. We are here to tell you that there is hope.
With the right financial knowledge and some discipline, you can get yourself out of that debt pool.
Create a Monthly Budget
Many times people overextend themselves each month simply because they do not have a budget set up.
Keeping a monthly budget will not only ensure that your bills are being paid but will also give you a visual perspective on exactly where your money is going.
Start by entering your fixed expenses such as your mortgage payment or rent. Then enter your everyday household expenses.
This will give you an idea of how much money is coming into the household and how much is going out.
Consolidate Your Loans
Putting all of your debt into a debt consolidation loan can make a big difference in the amount of money you spend each month on interest.
Average the interest rates that you are currently paying on your debts.
Once you have established the interest rate that works best for you, consider applying for a loan through a lender such as the Liberty Lending Group to pay off your existing debts.
Credit Counseling
A successful accountant working with financial data in the office
Credit counselors specialize in negotiating with creditors. They may be able to help you get lower interest rates on current loans and set up debt management plans to reduce monthly payments.
They can also help you set up a budget and provide you with money management skills to ensure you stay on track for your financial future.
Transfer Balances
Many times you can reduce your monthly debt by directly transferring existing credit card debt to another credit card with a lower interest rate.
Some credit companies offer an extremely low-interest rate as an introductory rate to new customers.
In many cases, it can be as low as 0%. Making interest-free payments will allow you to pay off your debt faster.
Getting yourself out of debt doesn’t have to feel like a never-ending battle.
You’ve already taken the first step in getting yourself back on top of your financial situation.
It’s time to take the next steps. Setting up a budget, discussing your finances with a counselor, consolidating your debt, and getting rid of those high-interest credit cards can ease that financial burden.
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Category: Financial Education
