In Debt Over Your Head? 5 Steps to Help You Rise Above
If debt is a constant and worrying presence in your life, what measures are you taking to change your current financial situation? If nothing is your answer, you might want to consider these five easy steps to start alleviating the stress that debt can create in your life.
- Evaluate Where You Are Now – Don't put off dealing with debts. Instead, take a moment to assess your current financial state - grab a pen and paper, your current bills, and take stock of your situation. Stop worrying about how much you owe and start keeping track of how you can improve for the future.
- Stop Spending More Than You Earn – Take a look at your expenses. If you're spending more money than you make, you are automatically compromising your financial situation. It's time to make a change in your financial game plan – and that includes putting down the credit card and refraining from unnecessary expenditures.
- Start Paying Off Your Debts – Once you understand your current financial state and have reigned in your spending, start setting aside a portion of your income to pay off your debts. Even the smallest amount can alleviate the pressure. When possible, try to pay off your debts with the highest interest rates – such as credit cards – first.
- Start Saving... Now – Do you know when the best time to start saving is? Now. The answer to this question is always now. If you consistently add a small percentage of your income to your savings account, little by little, your savings will accumulate in a big way.
- Pay Down that Mortgage – As stated previously, start with the highest interest debts and save the lower interest rate debts, such as your mortgage, for later. But when you can, send a few extra dollars each month with your mortgage payment. You will be pleasantly surprised to see how much the additional money decreases the amount of time it will ultimately take to pay it off.
In over your head with debt? These five steps can help you get back on the track toward financial freedom.
More like this
5 Actions to Managing Excessive Debt
Are you having trouble paying your bills when they are due? Does the problem seem to be overwhelming? If you're deep in debt, here are some actions you may take to improve your financial situation.
6 Advantages of Using Debit Cards
Debit cards are the happy medium between cash and credit cards – you get the convenience of carrying a card without the risk of overspending. If you've never used a debit card before, or are thinking about trying them out, here are our top seven reasons you should give it a try.
Financial Resolutions for 2020
As the year comes to a close and you start planning for 2020, make your financial goals a priority. When planning, be sure to take time to review your spending in 2019 to better understand what you should focus on in the new year.
Is Debt Holding Up Your Mortgage Pre-Approval?
Ready to buy a house? Congratulations! That is a big, exciting step, especially if it's your first home. However, before you can choose the perfect property and start packing your bags, you need to secure a mortgage loan, and there is a lot you need to know about that process.
Last Minute Holiday Shopping: What Not To Do
If you’re like the majority of Americans, you probably haven’t finished your holiday shopping yet – maybe you haven’t even started. If that’s the case, we’ve got a few last-minute holiday shopping ‘don’ts’ to keep in mind as you wrap things up... no pun intended.
Need help getting out of debt?
Why wait and save to buy something when you can borrow money today and pay it back later? That's the question many consumers contemplate when making purchases. Combine this attitude with easily-accessible borrowing options and it's no wonder why many find themselves spending their way into debt.
Oprah's Debt Diet: What It Is & How You Can Benefit
Over a decade ago, talk show host Oprah Winfrey presented her viewers and fans with an 8-step program for debt management. It was designed to get people thinking about their debt, taking control of it, and eventually eliminating their debt altogether.
Take the Stress out of Holiday Shopping
While the holidays represent a time of joy, family, and togetherness, for many, they can also bring about stress – particularly when it comes to shopping and personal finances.
Tips to Pay Off Your Holiday Debt Fast
Ah, the calm after the storm of the holidays. Gifts have been given, parties attended, and your stomach filled to the brim with delicious treats and sweets. It’s all great and wonderful...
Using Personal Loans for Credit Card Debt
Credit card debt is widespread among the average American household and finding ways to consolidate it usually means tapping into the equity in your home or seeking a personal loan to service the credit card payments.