7 Ways to Deal with Debt
Here are some useful ideas you can use to handle your debt
Getting into debt can be fun for the moment, but when you have to begin dealing with those bills it’s not so fun anymore. The item that seemed like a good deal when you bought it can end up being very expensive over the long haul. Let’s say you bought a really nice recliner on sale for 50% off. OK, then you added on the delivery charge and then started trying to pay it off. You keep paying and paying, but the bill just doesn’t go away. Why? Because of interest and credit card fees. But there is hope. Here are 7 different ideas you can use to handle your debt.
- Create a budget. This isn’t the most exciting thing on your list of things to do, but as old fashioned as it might seem, it’s the most important. Until you understand how much disposable income you have each month, it will be hard to control your spending. It doesn’t need to take too much of your time to make a list of your income. Your monthly expenses might take a bit longer, but start with what you know. Throughout the month as you remember more of your expenses, you can add them to the list.
- Stop spending. After you’ve made your budget, you can see exactly how much money you have left to pay off your bills. Don’t pay the minimum on your bills just so you can use your extra money to keep spending. Learn to control your spending habits.
- Begin paying expensive debt. Take a close look at all your credit card interest rates to see which ones are the most expensive. You’ll be surprised at how much the rates can vary from card to card. Determine which of your cards is the most expensive and put it at the top of your pay off list. Do this by increasing your monthly payment.
- Learn to live with less. Consider the way you spend money each day and what you can do to improve your financial situation. The expenses column on your budget should help you see where you can shave off daily expenditures, such as fast food.
- Pay more than the minimum. Paying the minimum on your cards is a very expensive way to pay off your debts. Not only will it take a long time, the items you bought at a discount will end up being very expensive. Choose one card at a time and get it paid off.
- Apply for car title loans in riverside for instant cash. One way of paying off cards all at once is by using your car as security for getting a title loan. Check out the details with an online car title loan company. There are no credit checks, so even if you have bad credit you can still get a car title loan.
- Selling items. Find ways to get extra cash to put towards your bills, such as a yard sale to sell off unused items.