Struggling the pay of holiday debts and past debt? Listed below are realistic plans to getting rid of the debt faster.
1. Tally Up Your Current Debts
Hoping and wishing about your credit card bills won't make them go away.
Make out a list of your credit card account statements and tally up your debts. Check to make sure you have the most recent statements showing the balance.
2. Set Specific Focused Goals
Be very specific about how much you are going to pay off and when that will occur.
For example, if you have $1,200 in credit card debt, then four months is a reasonable amount of time to pay that off. Commit to paying $300 a month plus interest that's necessary to become debt-free. Being very focused about your objectives can help you realize your goals and recover from holiday debt and earlier debt sooner than you think.
3. Hold Off on Additional Credit Card Spending
Give yourself a chance to get your budget back on track by stopping the debt cycle in its tracks. Stop using your credit cards for three months so you can shift your focus to cash-based spending. Not accumulating more debt will make it much easier to stick with a debt payoff plan that actually works
4. Shop Around for Low Rates
If it's not realistic to pay off our holiday debt or earlier debts in just four months, but within a year, consider consolidating your balances to a low-interest or zero-percent interest credit card. This can help you save some money on interest charges and make it much easier to lower that balance. Just keep in mind what the interest rate increase will be after the promotional period is over and the time it goes into effect or you could be back to paying extremely high interest charges on the remaining balance. Shop around for the best credit cards offers based on your credit rating and spending patterns.
5. Return Unused Items
If you made too many purchases this holiday season or any other time, check the store's return policy and head on back for a return. If you made a purchase with a credit card, the store will credit the charge back to you credit card immediately and in turn you lower your credit card bill.
6. Rework the Budget
If your set goal is to pay off your holiday debt and other debt within a few months, its time to change your budget. Re-evaluate your budget to see what can be eliminated and all non-essential expenses. This will free up extra cash that can be used for your debt payoff plan.
Reorganizing your budget – and your priorities – can help to keep you ahead of your finances after a holiday debt hangover and past credit card charges.
http://ibourl.com/85o
|