If you fear you’re drowning in debt, be afraid no more! It IS possible to repay what you owe and improve your financial standing. Some debts will be conquerable in a short period of time. Meanwhile, others, like student loans or a mortgage, could take longer.
Debt repayment takes dedication, but it doesn’t have to be painful! The following five steps will prevent your debts from pulling you out to sea. Instead, you’ll be riding the waves to retirement:
- Don’t Accumulate More Debt: Don’t let yourself spend more than you make. One simple action: Leave your credit cards at home.
- Assess What You Owe: Gather your most recent credit card and loan statements. Note your interest rates and balances. Get your free annual credit report, check it for errors, and make note of your score; you may be eligible for lower interest rates.
- Maximize Your Savings: Look over your budget. You should ideally spend less than 50% of your income on household necessities. Avoid excess spending, because the more you can save, the faster you can be debt-free!
- Prioritize: Call your credit card company to lower your interest rate, or transfer your card balance to a card with a lower rate. Once you know what you can afford to pay off each month, calculate how long and at what rates of saving it would take to pay down your loans, prioritizing the debts with the highest interest rates.
- Be Strategic: Automate transfers out of your checking account, and always pay more than the credit card minimum payment. If making the minimum payment isn’t possible, or you want to get out of debt as fast as possible, consider taking up a second career to help you finally defeat your debts once and for all.
Once you’ve paid off your credit card debt, don’t risk an unexpected push into deeper debt; make sure you contribute monthly to an emergency fund! To learn more about debt busting and launching a lucrative second career, visit https://www.syncis.com/blog/