There are many ways you can reduce your debt. You can choose to get various agencies like consolidation or debt management agencies to do it for you or you can choose to reduce the debt yourself. Choosing a do-it-yourself option can be quite a learning experience.
What you need to do first is to understand where you are coming from. This is the first but nerve racking step to debt reduction. Write down what you owe who, if there are any interest rates involved and even any outstanding loans like student or mortgage loans. If you think that your debt is out of control, you may require the services of a professional debt counselor.
Take a look at your monthly budget and pen down your income after taxes; you can then subtract all your expenses and see what your balance is. This amount is what you can use to pay off your debts. Take time to examine what you can reduce spending on; it could be taking the bus or carpooling instead of always driving to each destination. Remember the more monthly payments you make towards your debt, the sooner you will be debt free.
Create a financial plan on how you will go about reducing your debt. Make a decision to pay a certain amount per month to each debt. While you are doing this, you are not adding any extra debt. If possible try and increase the number of monthly repayments. If for example you are paying $225 this month, try and pay $275 in another two months. Talk to your creditors during this period and see if you can negotiate lower interest rates or even lower monthly payments. Above all, follow your plan through see it to the end. It will make you wiser in the long run.
Mercy Maranga writes content on Finance and Debt Management. Visit her site here for more information on Finance and how to effectively Manage your debts. Debt
Article Source: http://EzineArticles.com/?expert=Mercy_Maranga
สมัครสมาชิก:
ส่งความคิดเห็น (Atom)
ไม่มีความคิดเห็น:
แสดงความคิดเห็น