3 Things To Do This Week If You Have Significant Debt
One of the biggest risks with debt is that it's easy to get into, but quickly paying it off seems next to impossible. That's why, if you have found yourself in a cycle of owing rather than saving, it's important to put together a plan as soon as possible. In a world where it seems the highest interest rates, lowest credit scores and all the personal loans in between are out to get you, putting your best financial foot forward is paramount.
There's no single right strategy for getting your debt under control, whether it's the avalanche or snowball method. There are a lot of factors involved, like your age and the type and amount of debt you have, so everyone's situation is unique when it comes to repayment plans.
However, before you let multiple credit card balances put you in a panic, here are some positive steps everyone can take -- and the sooner you get started, the better. Your long-term financial planning should include trying these things you can do this very week to pay off debt faster or even eliminate it.
Find Out: 10 Proven Budgeting Tricks to Stop Credit Card Debt
Read Next: Meet Your Complete Financial Toolkit. Budget, Build Credit, And Track Your Money - All In One Place
Find a Debt Settlement Company
This often overlooked strategy involves enlisting a company to negotiate with your creditors so you can pay what's known as a debt settlement, or a lump sum of money that's less than what you owe. Debt settlement can be an effective option because you are ridding yourself of debt rather than simply restructuring it.
If you have high levels of unsecured debt and are struggling to keep up with your minimum payments, it could be a good idea to contact financial advisors or debt settlement platforms to help you get your payments down sooner rather than later. The first step is to set up a free, no-obligation call with an expert to see how much you could save, along with learning all of the terms and conditions.
Get Credit Counseling
Credit counseling services are an option if you need expert advice on managing your money and debts. According to the Federal Trade Commission, credit counseling companies and organizations can assist with developing a budget, provide free educational materials and workshops, and help you make a plan to repay your debt. Many counselors are certified and trained in areas having to do with budgeting and money or debt management.
As the FTC noted, the best credit counseling services spend time discussing your entire financial situation before coming up with a personalized plan to solve your money problems. It can help you strategize in ways such as paying down debt with the highest interest rates first or working with balance transfer credit cards. Your financial situation is as unique as your debt repayment plan will be.
Consider Debt Consolidation
With debt consolidation, you combine all of your debts into a single loan that allows you to make one monthly payment. You could also try a debt consolidation loan, where you get a new singular loan that combines multiple outstanding or credit card debts into one monthly payment. It's a debt management strategy that can help you save money on higher interest rates, pay off debt faster and improve your credit score.
The idea is to get a lower interest rate with the consolidated loan. As a bonus, consolidating simplifies your debt, so it's easier to track and manage. Debt consolidation services work especially well if you're juggling different credit card bills from multiple lenders with varying interest rates.
Takeaway
Putting off debt repayment only makes it a steeper financial hill to climb later. There are tried and true financial strategies you can try this week to get your house -- and debt -- in order. If you try these methods today, tomorrow you can say you've already started paying down your debt.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
