Debt reduction is about taking control of yourself and making steps toward positive action. First, you have to alter the way you perceive money. You must treat it with respect. Imagine, if you will, a world where there was no such thing as borrowing. What if you had to survive exclusively on the money that you currently earn? What if, when you wanted something that couldn’t afford immediately, you had to save up for it?
Does that sound horrible? Well, a long time a go, this is exactly how people lived. Sadly, with lenders practically force-feeding loans and credit at us, quite a few people have dug themselves into quite a hole with debt, and don’t even know where to being with their debt reduction planning.
Well, you must start at the beginning. Even if you already have debt, don’t buy what you can’t immediately afford. If you continue down this path, you will just dig yourself further and further into the hole, and debt reduction will be but a pipedream.
Get some perspective on the situation and consider the problem logically. All of your debt needs to be accounted for. Don’t let yourself get overwhelmed, though. Break the task down into manageable chunks.
First, pay off the debt that racks up the most penalties and interest charges. This may even be a “one year same as interest” loan, that, when you fail to pay it off within the year, suddenly racks up a ton of interest charges. Credit and store cards have a high tendency to carry huge interest rates. Barely paying the minimum payment will keep you in debt forever, and you will pay a tidy sum in interest for the privilege.
See if you can find a 0% account balance transfer credit card offer. Sometimes these interest rates are for a limited time. So only transfer as much as you’ll be able to pay off before the deal period is over. Also, make sure you’re not paying more in card fees than you would in interest in exchange for this good credit card interest rate.
Regardless, even if you only have a year to pay down your credit card bills, this extra time will really help you knock down the total debt, rather than constantly paying for interest charges.
While you are working out your debt reduction plan, consider your purchasing decisions, and their impact on your overall debt situation. Were those new pants an absolute necessity? Could you have purchased a cheaper pair? Did you need them at all? Consider walking away from the purchase for 2-3 days. If you still think you really want the item in consideration, then maybe you really do. But, consider how many things you’ve bought only to ignore a week after buying them.
Keep following this debt reduction advice until your debt is manageable This discipline up front will payoff huge in the long run.
No related posts.
« 5 Steps to Eliminate Credit Card Debt Reputable Debt Reduction Agencies »View the Original article
No comments:
Post a Comment