Don’t Be A Loan Ranger – Deal With Debts Productively
Most people don’t need to roam the Deep South or have a companion named Tonto to relate to the Lone Ranger. 7 out of 10 people have a credit card, and more than half of these people run a surplus. Plus, there is the fact that the average national debt, including mortgages, is $130,000. The odds are high that you are dealing with a loan or debt of some kind and want it gone as soon as possible. If this is the case, the way to hit your targets is to get out of the red productively. Here are a few tricks which will help.
Pay More Than The Average
Credit card companies are not stupid. They understand people and know they are more likely to sign up if the repayments are not high. As a result, most people max out their piece of plastic and set the payments to the minimum. The reason this is a bad idea is it doesn’t eat into the credit you have already spent. All you are doing is paying off the interest while the total balance remains the same. To start taking a significant chunk out of your balance, repay more than the minimum. The key is to look at your finances and figure out what you can afford to pay.
Understand The Stipulations
For the most part, an individual has no idea what the loan entails. Of course, this is dangerous as the small print could include some damaging features. So, anytime you sign up for a loan, make sure you understand the terms and conditions. This piece of advice is essential when dealing with a new type of loan. Credit cards and mortgages are ten a penny nowadays, but bail bonds are a different story. Acme Bail believes anyone who is in legal trouble should think about the consequences first. Although making bail is a priority, it isn’t effective if it takes away from your legal budget.
Don’t Consolidate
Companies like to promote the pros of debt consolidation, but it is a bad idea. On average, a consolidation expert can save you up to 40% on the original payments. The problem is that the new deal extends the length of time by a months or years. In the end, the extra time it takes to pay off one significant debt will cost more. The key is to get your finances in order and understand what payments need authorizing and when. Then, you can forget about consolidating your debts and pay them off quicker.
Change Your Attitude
Often, it is an individual’s attitude which makes the situation worse. Simply put, you can’t feel sorry for yourself and let the debt consume your life. Rather, you have to think about the sacrifices you can make to turn the scenario around. Can you live off less? Are there expenses which are not necessary? What about getting a second job? All of these are ways to save or make more money to pay off your arrears.
The key to getting out of debt is proactivity. If you value organization, everything will work out fine.
