Best Debt Advice
Some of the best debt advice every acknowledged was simple. Don’t charge anything. Save until you have the cash to pay for the item. However, that’s not always possible.
Some of you may also have heard the advice too late and now find yourself swimming in debt and barely making payments. Just like the advice on how to become a millionaire, spend less than you make and save the surplus, simple debt advice may be overlooked due to its simplicity.
If you’ve already created debt, the best debt advice is to pay it. It’s never too late but you have to have a plan and then put the plan in action to get out of debt.
Best Debt Advice Basic Steps
There are some basic steps to eliminate your debt. First, you need to find out exactly where you stand. It might be scary but making a chart with all your balances and interest rates is important. The first part of any debt advice column should always be to find out
where you’re at so you can make a map to where you want to be. Just like any map, you have to know where you’re starting. Also, look
at your budget. Do you waste money on unnecessary items? While a new big screen TV might seem like great bargain but if you have to charge it or use money you’d pay reducing debt, calculate all the interest you’ll have to pay and add that to the price. It doesn’t look nearly as good when you do that! Just tell yourself there will be other great sales.
While zero interest rate offers are difficult to find right now, if you have one, investigate. Look at all the options on the offer.
Does it allow you to transfer balances or simply charge new items at zero interest? Is there an annual fee involved? Some card advertisements you receive through the mail show 0% in big letters. The offer may last six months or longer. However, you read all the
details, there are set-up fees, and annual fees that are more than interest would be on the limit they offer. Also, find out what the
interest rate is after the initial offer. You might be better staying where you are.
Best Debt Advice Companies To Work With
Call all the credit card companies where you do business and see if you can get a lower interest rate. If you’ve paid your cards on time and have a decent credit rating, the option should be available. If the service agent can’t do it, ask to speak to a supervisor.
Let them know you plan to take your business elsewhere if you have that option available. If the debt on the card is large, you might be better off with a reduction of a few percentage points of interest than you would with a short-term zero rate. Always do the long-term math.
Calculate how long it will take you to pay off the card and the interest for that length of time for both.
Start paying off the cards that charge the most interest and then go the next high interest card. The name of the game is debt reduction, which means you want to pay the least amount of interest and the most principal.
Once you pay off a card, keep it for emergencies tucked far in the back of the drawer. When you pay off the second card, write the first company and cancel the first and highest interest rate card, then cut it up to little pieces.
Continue with the same best debt advice until you pay off all your cards and then set up a sinking fund for the mortgage or pay it ahead, which ever works the best for your tax situation. I hope this help for the best debt advice