Solidifying A Better Future For My Kids
In Over Your Head With Debt? 2 Tips To Get You Out Of It
Jackie Watts
If you have found yourself in over your head with debt, this can be a very difficult time. You likely do not see the light at the end of the tunnel, but there are many things you can do so you can get out of debt. Below are two of these things so you can get started.
1. Financial Planner
One of the best things you can do is to hire a financial planner. This professional is experienced in helping people with money problems, as well as helping them plan for the future. Bring along all your bills with you so the financial planner can get an idea of your financial situation. If you have time, get a copy of your credit report and bring this along with you also.
The financial planner will go through all the paperwork and then decide on a plan to help you. For example, they may tell you the best way to pay off your debt. For example, paying as much money as you can on one credit card until you pay it off but pay the minimum payments on the other cards that you have and then move down the list. The financial planner can explain all this to you so you will understand what to do. When you are out of debt, continue seeing a financial planning service. They can set up things for you like a retirement plan and much more.
2. Consolidation Loan
If you have not ruined your credit yet, you should consider getting a consolidation loan. With this, you borrow enough money to cover all your debt. The loan company will then send a payment to each lender to completely pay off your bill. When everything is paid for, the lender will set up a payment plan with you. This will make things much easier for you as you will only have one payment per month instead of several. You will also not have creditors calling you constantly and sending you letters in the mail.
When getting a consolidation loan, you do need to make sure the interest rate is not real high. If it is, then you would end up paying more than you would if you paid off your debt on your own. Also, if the interest rate is acceptable, make sure it is a fixed rate. This way the interest rate will not go up while you are paying off the loan.
It will take time for you to get out of debt, but it will be well worth it when you are.
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One day a few years ago, I was forced to take a good, hard look at my finances. I realized that my husband and I were living outside of our means, and I knew that we needed to make some changes and fast. I started looking for ways to spend less money, and I was able to completely eliminate some of our largest expenses. It was a lot of work, but it really helped us to feel more free financially. This blog is here to help other people to spend a little smarter and to avoid the hassles that come along with spending more than you have.