How To Get Out From Under Debt Before You Drown
Debt is something that is really hard to ignore because it can affect so many parts of your life. You might find it difficult to get a vehicle loan, rent an apartment, or even get school loans if you have bad credit and debt looming over you. You might even be paying more for car insurance or even health insurance because of your debt, and until you do something to improve your financial situation, looking for cheap car insurance and better home protection policies is simply out of the question.
The important thing to know is that it is never too late to start taking care of your credit, and there are some great ways to do it. You simply need to be motivated and have the desire to make your life better, and allow yourself to have better control over your money and finances.
Try Consolidation
Debt consolidation can really help you get back on track when it comes to debt, and it offers an easy way to lump all of your payments into one. It’s much easier to deal with one payment than many, especially when you still have all of your normal bills to pay separately on top of them. Take a little time to research your debt consolidation options before you pick a company, and find the one that will work best with your needs.
Lower Your Lines Of Credit
How many accounts do you have open, whether it’s credit accounts or loan? The more money you owe the worse it is. However, don’t cancel any of those credit cards when you have open balances out there. Work on getting them all down to zero balances, then weed some out of your wallet.
If you already have a good deal of cards don’t attempt to get more. Even if they’ll give you more, you should work on paying off what you have. How many store credit cards does one person need anyway?
Take A Little Time Off
Take some time off of some of your debts and bills, when you can, so that you can focus on some of your other bills. Some car loan companies and banks will allow you to take a month or two off over the holiday season, though you still owe the same amount, you just pay two months longer than you would have.
If you have school loans, you can look into loan forgiveness and not have anything to pay back, although there are some stipulations in order to be eligible for this. You may be able to get an extension on your loan, lower your monthly payments, or with college loans you may be able to get a forbearance if you are making less than you once were.
Learn The Difference Between Want And Need
Once you are on the road to better credit it’s a good idea to reevaluate the things you spend money on. Rather than buying collectibles and clutter that fit into the “want” category, learn to focus on your needs. Needs include clothing (nothing fancy and not too much), work clothes, food, electricity and heat, and maybe even internet if you have school age children or you use it for work.
