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There's nothing like having financial independence from debt. Our debt comes from both smart choices and bad choices. I have personally been trying over the last four years to really get control over my own debt. I realize that paying off my debt was not a priority and that I made a lot of excuses and went on a couple of shopping sprees that were counter productive. But now I know if I want to be serious about buying a home, then I'll have take a different approach. I want the same for my readers, the ability to have more access to your income for your own personal enjoyment. If you are seeking control over your debt, here are 6 powerful ways to break up with your debt:
1. Balance transfer
It is exactly how it sounds, transferring one balance to another. Your credit account sends you an offer to transfer a high
interest credit account to a lower or zero interest rate. Consider the terms of the agreement-interest rate and the time period if there's promotional interest rate. This works best if the
account is transferred to an account that is already paid off or has a low
balance that can be paid off within the fast time period as well. This will save you
money in interest and force you to accelerate your payments.
2.
Credit card balance settlement
Call your credit card company and
ask if you can make any arrangement for a temporary reduction in interest or a
payment plan for a reduced balance with accelerated payments. You do not want to close your account because it reflects negatively on your credit history but you should stop using the account if you are going to pay it off.
Courtesy of www.creditcardchaser.com
3.
Debt consolidation
Obtain a personal loan that can pay off all
of your debts into one monthly payment. This may possibly save you money in
interest but absolutely consolidate all of your debt into one place.
4.
Increase your income
Create additional income from a part time
job or an investment. You can sell unused household items like furniture, electronics, clothes and shoes. You can seek a job that pays a higher
salary. Become your own boss and invest in a small business opportunity.
Courtesy of www.raisingceokids.com
5.
Reduce your expenses
Plan accordingly with your budget to
minimize your costs. Consider your expenses and making lifestyle changes like reducing your data plan on your
phone, removing premium channels on your cable bill, utilizing less
electricity. In extreme situations, consider downsizing your lifestyle. For example, renting a more affordable home or selling your car to pay off
debt and using public transportation if more affordable.
6.
Snowball your payments
As you pay off one account, take the money
you were using for that payment and roll it into the next accounts payments.
Now you are building more disposable income to place toward reducing your debt.
Either you can choose to pay the higher interest rate account first or the
lowest balance account first. See march practical wallet posts for additional
reasons to not let debt nail your down.
