Debt is one of the top stressors in many people’s lives. It is a necessary evil at times and a bad habit at others. No matter why you are in debt, everyone dreams of getting out of it. Here are three tips that may help you do just that.
- Paying off credit card debt is a priority that many of us list. Easy to talk about, but hard to do. Approach your credit card debt from the highest interest rate to the lowest. After identifying the card with the highest rate, make the minimum payment on all the rest. Now, try to send at least double the minimum to the highest rate card.
- After making your monthly payments on your cards, put them away. Lock them up if need be. Just let them rest for two months minimum and leave the highest rate card locked away for a very long time.
- Usually, the largest monthly payment a person has is their mortgage payment. Call your bank and see if they allow principal prepayment. If so, divide a monthly payment by 12, then send that amount every month on top of your full payment, marked as principal only. That will allow you to make an extra payment each year, cutting about five years off the term of your loan. This could save you tens of thousands of dollars.
Even though debt is necessary, you can manage it so that it does not control you. If you need a little help, don’t be afraid to enlist the service of a professional such as those we recommend here at Texas debt consolidation. Remember that working with a specialist to get out of debt is never a sign of defeat. It means you’re smart enough to seek expert knowledge when you need it.