In this article you will learn about:
Create a list of all your debts and for each one, figure out what you owe, your monthly payments, and the interest rate.
Examples may be your mortgage, or personal loans for a vehicle or RV. Other debt to consider are taxes, payday loans, student loans, and of course your credit card.
Once you have compiled your list, you can start to see which debt are 'good' or necessary and which ones aren’t serving you. From there you can make a plan of action.
Consolidating your debts can be done by applying for a loan or line of credit to pay off as much of your high interest debt as possible. You then would be paying one payment as opposed to each debt individually. This benefits you because you will be paying a loan with a traditionally lower interest rate. You will start saving money that can be put towards your debt faster.
When considering a consolidation loan, you need to make sure not to use the credit you are working on or you will acquire even more debt than you had before.
Consolidation loans don’t affect your credit rating so long as you make your payments on time.
Shop around at financial institutions for a consolidation loan and make sure to compare interest rates with lines of credit. Be aware of predatory companies offering consolidation loans but have much higher interest rates after a certain amount of time has passed.
Your first it to make a budget! Keep track of your daily spending and find ways to make reductions. The more money you learn to save the faster you will get yourself out of debt. Think- Do I need this or want it?
Make small changes like making your coffee at home and bringing your lunch to work can really add up.
Keep your credit cards in your wallet! Until you have your debt in a manageable place, keep those cards in their little wallet home.
Avoid those too good to be true deals. If you can’t afford it now, you won’t be able to afford it when the term is due and suddenly the interest rate jumps far from zero.
Sometimes, you need help making decisions of what to do next and expert advice is needed. You are not alone in your journey back to credit health and there are plenty of professionals out there to help you.
Here is a list of dedicated progessionals you can rely on:
Find a Licensed Insolvency Trustee here :
Let your fingers do the walking or come in to see us.
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