5 Tips For Handling Debt
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.) Knowledge is power. If you know that you need to settle your debts, then face the music. 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? Don’t just pay the minimum due, pay as much as you can in excess of the minimum. There are experts who believe you are right by paying off the balance with the highest interest rate first, while others think you could get farther if you pay off smaller before larger balances. Decide what’s right for you.
3.) Take some time to think things over – can you really afford your existing mortgage? Call your mortgage company at the soonest possible time if there is anything that is preventing you from making your payments like you used to.
Most lenders offer customers a mortgage modification plan if this is the case. This is actually simpler than it sounds – this just involves having your original terms and conditions modified until you can get a lower interest rate and monthly payments on your mortgage.
Another thing you may want to do is downsize your home so that you don’t live outside of your means. Maintain this arrangement for as long as you could, but you can always go back to the way things were once your finances are healthier.
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. Have you ever tried paying your utility bills sight unseen?
What often happens next is that you would find out that you had been overcharged multiple times when it’s already too late. Wouldn’t you feel better if that money went to pay off your debts instead of lining the pockets of the utility company?
5.) Put something in savings every payday. Doesn’t matter if it’s just twenty bucks.
There’s no need to rush paying your debts as long as you pay them off eventually and get your spending under control. There’s no such thing as a debt that you cannot eventually pay off. There’s help available if you feel lost, confused or frustrated.
Follow these healthy living tips and enjoy a feel-good lifestyle. Check this calorie chart for a list of healthy foods with maximum nutrition and minimum calories.
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