Sat Dec 29, 2012, 2:00 am | 2 Comments
When you are heavily in debt, a time comes you may feel like you will never get rid of debt in your lifetime. It can be extremely stressful at times and consequently you may lose sleep. You may become slave of your own debt. At times, it can be very discouraging and you may start thinking of taking the route of bankruptcy.
For the do-it-yourself folks, it may not be as hard as you think it is to get rid of debt in your personal financial life. However, it will need your utmost determination and perseverance and strict following of your own set rules in order to be debt-free.
Don’t be discouraged but you must start at some point and follow the below 3 steps and the sooner the better. Obviously, it will take time but if you start paying your debt in a timely and organized manner, there is no reason why you should not be able to pay off your debt. In the process, you will definitely improve your credit score as well.
Here are the 3 tips you can follow for paying off debt.
Talk to your lenders to lower your interest
If your loan consisted just of principal and no interest, you would have paid it off a lot sooner. But interest is one reason it takes a lot longer to get out of debt. Many lenders will be willing to lower the interest rate and help you pay off your debts quicker.
Consolidating your loans can help you pay off debt quicker
When you consolidate all your loans, it might lower interest rate as well. Instead of paying several small payments that each charge interest and in the process might miss a payment, you can pay one larger payment with less interest. Search for debt consolidation firms. Be careful to choose the one which has good reviews. But first, understand what the inner workings of debt consolidation are.
Pay your bills on time
The best way to reduce your debt and eventually pay it off is to pay your bills on time. Pay more – as much as you can – than the minimum each month. Most credit cards companies will charge a late fee and finance charges if they don’t receive payment on time. These fees can quickly add up and gain interest of their own which makes your debt larger and larger every month.
In a Nutshell
If you truly follow the above three steps, you will surely pay off your debt sooner than later. And once you are debt-free, you will feel so much better like never before and sleep like a baby.
- Dec 30, 2012: 3 Not So Hard Ways To Pay Off Debt – Doable Finance | Caribbean Islands Hotels