Are you like so many Americans who owe more money than they care to admit to? Well, do not worry you are far from being alone in this regard. Between mortgages, credit cards, auto loans, student loans, and any other type of debt there are many to consider. But as I said, you are far from being alone in this predicament. Most Americans do have some level of debt while others have much higher levels. The goal here is to go from owing creditors to being an individual or family that lives debt free. And here are some helpful tips to get you from being in debt to being debt free.
One of the first things that someone in debt needs to do is figure out what they owe and who they owe. Without knowing who you owe it is almost impossible to be able to get out of debt. When calculating what you owe you need to ensure that you also include any interest payments that will be owed. Again, you need to know what the total owed is including interest payments. Some people advocate the snowball method and that is one I have endorsed as well. But as I have stated in previous blogs the interest saved between starting with the smallest debt as compared to the ones with the highest interest rates is negligible. If you want to know what you owe from a simple spreadsheet, you can get my debt spreadsheet on Fiverr from the following link, Debt Reduction.
Next you need to cut expenses. If that means eating out less than that is one area that you can look to cut back on and create savings, but in order to do that you must first create a budget to know where your hard earned money is going. Once you know that you will have a better idea of where and how much can be cut from your expenses. If you are in need of an inexpensive budget spreadsheet, I have one available on Fiverr from the following link, Budget. If you desire a more complete or comprehensive spreadsheet suite, I use and recommend Simple Planning from the following link, Simple Planning. With the use of one of these tools or one you design yourself you will be able to cut expenses and begin saving in earnest.
Another way to pay off debt is to earn more money. It is not always that simple, but it is a viable option. You can always get a second job, sell things on eBay, or perform simple tasks on Fiverr for additional money. Something that goes hand in hand with earning more is spending less on credit cards that historically have extremely high-interest rates. If you do make any extra money, it will be wise to pay off the credit cards that have these high rates. Use your extra money wisely and pay off these high-interest loans.
Another tip is to call your credit card companies and negotiate a lower interest rate. This is a better option for those who are not delinquent on their payments. If you are current on your payments, you will be in a better position to get these higher rates lowered. Ask for the hardship department or a supervisor to speak with right from the beginning.
The final tips are to get credit counseling and possibly hire and attorney if you are considering bankruptcy. It is sometimes a good idea to seek the advice of a non-profit highly rated company by the Better Business Bureau that may charge small fee to help. Most of these legitimate companies will offer a free initial consultation. And if you still are in need of an attorney after seeking the help of a credit counseling agency as them for a referral to make sure you are getting a well-respected and qualified bankruptcy lawyer.
Paying off your debt is not impossible but it does take hard work and a change of lifestyle. If you are committed to achieving this goal, seek the help you need and surround yourself with positive people. For more information or if you have any questions feel free to contact me.
