To debt is to live
America has some things in common, death, taxes, and debt! We all have to live
with debt to some degree or another, it is inevitable. But
there are huge differences between a low interest student loan to get you a
better paying job and that 18% department store credit card! Know the
difference between good debt, low interest smart borrowed money, and bad debt,
high interest lines of credit for things you can't afford and probably don't
need anyway. Use the strategies outlined below to find some easy to use tips to
get out of debt and stay that way. Learn to live with some debt but not let it
overtake you and your life or ruin your credit.
Debt to income ratio
Find out where you are financially each month. Go online and use a debt to
income ratio calculator
to see what you are making versus what you spend. Many
people don't know the answer to that simple question, don't be one of them.
Knowing if you are spending too much each month is critical to staying out of
Cut those cards
Credit cards are here to stay and more and more a part of your daily life. You
do have options though, and need not become a victim of your credit cards
them all out and prioritize them from highest to lowest interest rates. Get the
highest cards paid off or balance transferred to the lower ones today. Keep a
couple cards, the lowest interest ones, and cut the rest up and throw them
away. Don't be tempted by new offers.
Call and lower your interest
Calling your creditors
may seem like a useless proposition but you may be
surprised. Lenders are willing to work with you to lower your interest rates
you are currently paying, but you have to ask. Take the time to call around and
let them know you would like to stay their customer, but that you are getting
offers from other lenders with lower rates. Look for them to compromise.
Plan for success
Make a financial plan to pay off what you owe and not spend more than you make.
A simple but realistic budget that you can stick to and meet your financial
obligations each month. Cut back on what you don't need and keep on top of your
money to stay debt free for life.