Debt Burst Announces 10 Tips For Dealing With Debt
Reno, NV, October 26, 2010 -- Paying off debt is a matter of making more money than the spend, and then allocating the extra funds to outstanding balances — easier said than done, right? To some it may be just that easy, but to most, debt is so common that it eventually becomes a way of life. In fact the average family household averages $9,000 in credit card debt.
The best thing one can do to improve their family’s personal economy is pay down credit card debt. Once the commitment to paying down debt is made, sit down and come up with a plan for payoff. Here are the top 10 tips we came up with that can help!
1. Control the credit - Borrowing one’s way out of financial difficulty or becoming debt-free by continually charging is not done. A small loan to tide over may be appropriate when facing a temporary setback. Don’t get any deeper into debt. Save the credit card with the most favorable terms and cut the rest up. Make sure to check the fine print for information about punitive pricing, universal default and two-cycle billing. Avoid accounts that have any of those features.
2. Assess the debt - Gather all of the statements and find out whom you owe, how much is owed, and at what interest rate. Know the credit limit.
3. Adjust the spending - Make a conscious effort to know the difference between needs and wants. Come up with a written plan for reducing the debt systematically. Develop a daily, weekly, or monthly budget and record ingoing and outgoing income in a notebook for easy viewing.
4. Communicate with the family - It is imperative that all members of a family understand the financial situation so they can support change.
5. Research the available resources - Examine ways to increase income and decrease expenses. Consider selling non-essential assets or finding additional work. Transfer balances on credit cards with high interest rates to cards with lower interest rates.
6 Establish priorities - All debts equally impact a family’s finances (and their credit score), so it is important to pay each creditor every month. Consider allocating extra funds to the debts with the highest interest rates. Pay your bills promptly and pay more than the minimum balance if possible.
Set aside an amount of money to pay for all minimum monthly payments plus whatever extra that can be afforded. On all but the debt with the highest interest rate, pay the monthly minimum on time. Add the extra money that has been set aside to the minimum for that last debt. Continue this until that debt is paid. Then, apply what was being paid on that now-paid debt to the next one in line while continuing to pay the minimum amount on other debts. The additional amount paid on each successive debt pay off more and more allowing paying off each debt faster and faster.
7. Contact the creditors - This is important! They’ll work with their debtor if contacted. Avoiding them just leads to more problems. And, many creditors are willing to reduce interest rates for consumers who are facing temporary setbacks or those who are willing to ask.
8 Avoid predatory lenders - Payday loans and car-title loans may seem like a solution; however, the high fees puts people further into debt.
9. Get help - Contact Debt Burst today who will gladly give the answers you need to hear.
10. Learn from the mistakes - Once having reached a comfortable and manageable level of debt, be sure to establish an emergency savings account to protect from future setbacks.
Most importantly, remember to be both patient and persistent. Don’t give up or find ways to avoid dealing with it. We always dislike doing the things that are difficult or take up time but paying off debt and building wealth is worth a little stress of getting started but there, it will feel great! Debt Burst has programs that can get people out of debt faster and help the, regain control of their finances and life.
About Debt Burst
Debt Burst creates programs for clients seeking both debt management and debt settlement debt relief solutions. They work with the clients to understand their needs and customize a plan to fit the client’s financial situation. With over 20 years of experience and commitment to the clients, Debt Burst helps clients manage their finances, take control of their lives, create a secure financial future and most of all become debt free. We are recognized leaders who have gone beyond the normal debt management and debt settlement services to offer assistance for our customers to maintain a debt-free and rewarding life. We are committed to excellence and strive for outstanding customer service and support. We’ve helped over 40,000 clients and settled over $1 million dollars of debt over the past three years.
Checkout what Debt Burst has to offer and learn more about our services at www.debtburst.com or call Debt Burst Today at 800.656.6204
- Contact Information
- Sam Magi
- Debt Burst
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