No one really likes to be in debt. However sometimes we don’t have a choice because of emergencies that happen. We HAVE to lend and borrow for important reasons.
University loans, housing, credit card bills and so much more. Don’t forget about the interest rates that would cripple your financial stability unless you were someone really wealthy and well-off.
Let’s take a breather and review some of the tips in getting out of those debts, okay?
Student Loan
- Want it to be more manageable and maybe even predictable? Lock it in a reduced rate.
House Debt
- Call someone certified so you both can discuss your options and the situation at hand. A financial planner should do. They are well-trained in providing advice when it comes to the management of money.
- Maybe refinance? Try and see if you can finance if you have an ARM. You could even benefit from this if your income and credit are both good.
- Research some of your alternatives if you think that you are in danger of foreclosure.
Credit Card Debt
- Consider transferring to a card that was low-rate. Be careful about where you choose to go though. There might be some transfer fees that you have to face and not to mention that their terms could be changed.
- Lower-rate? Try negotiating for it. It might be possible if your credit is pretty good.
- The unused cards? Yeah, you need to close them. This discourages theft in identity.
It’s going to take years to clear yourself off these debts if you have them. Unless you suddenly have enough money to clear them in one go, you will be handling them for the next few years. It’s a headache to think about, since you clearly have to spend your money on anything else, especially your survival. My best and probably slightly useless advice to this is to try NOT to get into more debts than you already have. Don’t pile your debts on top of the other. That is not going to bring you good fortune.
Don’t Get Tempted
It happens. Sometimes we see something that we want to buy right away, even when we clearly don’t have the money for it specifically. Just avert your eyes and don’t think about it if you can. Only make purchase or add your debt if it’s an emergency. Nothing more. In the meantime, fix your debts. At least do an attempt so you can breathe easier later on. You and your family can breathe easier if you clear them all. At least when you fixed them all, you can be free to purchase and do whatever you want with your money. Try to clear them before your retirement, though. It would be such a waste if you wait that long.
