Money Saving Tips :: Debt Cure
Debt Cure:
Develop a Plan for Debt Cure
Take the First Step
If you’ve decided you need a debt cure, congratulations, you’re ahead of the curve! An awful lot of people either don’t know or don’t care that they’re in debt and need to get out of it. So, where do you start?
The first step is to write up all your debt and bills. What do you owe to your credit cards? Do you have car payments, or other big ticket items that you’re making monthly payments on? What about rent or mortgage, or maybe student loans? If you have any medical bills, factor those in too; and then your regular bills: groceries, utilities etc.
Consolidate Your Debt
An excellent debt cure is getting rid of too many credit cards. If you’re making minimum payments on six cards, you’re never going to get out of debt. So, the first step of debt cure is to figure out which credit card has the lowest interest rate, and then transfer as much of your debt onto it. If you’re fortunate, you can get all of it on it!
Then, make large payments every month. If you have savings, use them to pay off those high interest credit cards. After all, earning one to four percent interest from the bank doesn’t begin to compare to paying twenty percent (or more!) on several credit cards.
If you own a home, it can help in your debt cure. By getting a home equity loan, you can pay off a lot of your debt, and then have only one monthly payment to make. In addition, the interest on a home equity loan is tax deductible.
Don’t Slide Further into Debt
The next step in debt cure is to get rid of those credit cards once you pay them off. Cut up the cards, and cancel the account. Now, keep at least one cards around, but get rid of most of them, and especially get rid of the high interest ones.
Getting Help
There are a lot of debt cure groups available to help you. Check your phone book or do a search online. They can help you draw up a monthly budget, and negotiate with your creditors to get you some relief. Many times, they’ll get your monthly payments reduced, and get your interest rates lowered.
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MoneySaveTips.com :: Debt Cure