Wednesday, March 20, 2013

Financial Tips and Tricks to Help You Get Out of Debt

Finding yourself in debt can be a very unpleasant experience. Demands for payment from credit card companies and other lenders, and worries about where you will find the money to make payments, can easily cause stress and sleepless nights. If you don’t act, the situation will only continue to spiral out of control.

There are a few things you can do to start working your way out of debt. The first thing to do, however, is to take stock of your situation and face it head-on.  You need to be completely honest and accurate about how much you owe. Take the time to sit down and add up all of your debts, as well as noting down how much you have already paid off and how much you are currently making in monthly payments. You should also make a note of your monthly income, and weigh this against your debts.

Now that you have an accurate picture of your financial situation, you can start looking for ways to get out of debt.  The following tips and tricks could help you, but you must make sure they apply to your present situation.

Move your balance to a cheaper credit card

If you have credit card debt and you can’t afford to clear your balance each month, you may be paying a small fortune in interest. This only adds to your debt. By putting in a new credit card application and moving the debt off one high interest card to a balance transfer card with a 0% APR offer for the first year, you will give yourself time to clear the debt without having to pay any unnecessary interest. You should try to clear your balance before the introductory period ends, or switch again to another card with an introductory offer if you can’t clear it. 

Reclaim unfair bank and credit card charges

If any of your debt is made up of bank or credit card charges, which have been incurred because you went beyond your limit, you may be able to reclaim them. All you need to do is apply to your bank and be persistent in pursuing the matter. The bank or credit card provider may not pay out, but it is worth a try if it can ease your debt problems. 

Use savings to pay off debt

This is an easy one – the interest you receive on savings is usually less than the interest you are charged on things like credit cards and loans, so it makes sense to use savings to pay off your debts.

Check if you can get help paying your debts

If you need help paying your mortgage, there are some government schemes which may be able to help out if you prove to be eligible for them. Similarly, some utility companies offer schemes to help out customers who are in large arrears. It is worth checking these out, as they could reduce your debt burden considerably. 

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Pam said...Best Blogger Tips[Reply to comment]Best Blogger Templates

It is unpleasant to be deeply in debt. I like the moving to a low interest or free interest for so long idea.

Robin W said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Sadly more ppl than we think are deeply in debt these days. I sadly, am one of those ppl, we are not to the breaking point yet, but these are great tips...especially for me the charges. Thanks.

Janet W. said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Luckily we haven't gotten to this point ever. I know there are lots of Americans that are high in debt and I feel for them. Great tips.

Denise Taylor-Dennis said...Best Blogger Tips[Reply to comment]Best Blogger Templates

These are great tips unfortunately so many people are overloaded with debt.

MD Kennedy said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Facing the problem head-on is certainly the most important step - and the first. And the hardest. I know form experience that once you do that, all the rest does come along with much less (although not no) stress.

Karen Glatt said...Best Blogger Tips[Reply to comment]Best Blogger Templates

I am glad that I have kept myself out of debt. I used to be in debt, but now I have gotten out of it by not racking up a huge credit card debt. I keep my purchases within reasonable amounts now!

Tammy S said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Great tips. One of the biggest ways people find themselfs in debt is by using credit cards. We don't use them except for trips and emergancies. Then we make sure to pay them off.

Tiffany Winner said...Best Blogger Tips[Reply to comment]Best Blogger Templates

i had to cut up all my credit cards and signed up with a credit counseling service to consolidate, it was tough and took several years but i got rid of my college credit card debts

Maria Iemma said...Best Blogger Tips[Reply to comment]Best Blogger Templates

Not easy to get out of debt. Every penny we save on groceries or any extra money we get for birthdays etc goes straight to pay down debt. Slow and steady is what we are committed to do.

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