To reduce your debt two things are needed self discipline and good financial planning. Below are ten ways that can help you with debt reduction:
1. Home Equity Loan: Homeowners have a great asset that can be used to reduce their debt. If you are a homeowner who has equity in your home, you can use that equity to obtain a line of credit, get a home equity loan or simply refinance your current mortgage. The equity you pull out of your house will help you pay off your debt. This has to be considered carefully because missed payments could result in the loss of your home
2. Replace high interest credit cards: Scout the market to locate the credit card company that offers lowest interest rates. Transfer your card balance to this company. This will reduce your interest repayments substantially. You should also look out for balance transfers at 0% interest. But remember that this gets negated if you skip or delay payment. One miss and you are back to paying the usual interest!
3. Utilize your assets: If you have any valuable assets, an extra car or valuable jewelry, that you can live without, consider selling these and using the cash to pay off some of your debt. Remember to start with your largest debt. These are usually the most challenging to get control of.
4. Consolidation Loan: If you have decent credit it should be relatively easy for you to obtain a debt consolidation loan. If you are a member of a credit union you may find they offer better interest rates. Banks have their own set of requirements for making loans. Lenders may require that this type of loan be secured by some asset.
5. Refinance your mortgage to reduce your payments: If you do not own a home you can try to apply for an income loan with a relatively ow interest rate. Lower mortgage payments will free up cash to help pay your debts.
6. Decrease your spending habits: Only spend money on your necessities. Limit your credit card use to emergencies or necessities. Self discipline will put you back on the right track.
7. Use your "extra" money: Whenever you receive "extra" money (refund, gift or any unexpected gain) use it to pay off a credit card bill or some other debt.
8. Pull cash from low interest savings accounts: The amount of interest you are gaining on those low interest savings accounts is probably far less than what you are spending in interest on your debt. It is better to take that money and pay off your debt.
9. Earn extra money: Try to increase your earnings by taking on a second job. Put your earnings toward your debt.
10. Use a debit card: This way you can spend only as much as you have.
1. Home Equity Loan: Homeowners have a great asset that can be used to reduce their debt. If you are a homeowner who has equity in your home, you can use that equity to obtain a line of credit, get a home equity loan or simply refinance your current mortgage. The equity you pull out of your house will help you pay off your debt. This has to be considered carefully because missed payments could result in the loss of your home
2. Replace high interest credit cards: Scout the market to locate the credit card company that offers lowest interest rates. Transfer your card balance to this company. This will reduce your interest repayments substantially. You should also look out for balance transfers at 0% interest. But remember that this gets negated if you skip or delay payment. One miss and you are back to paying the usual interest!
3. Utilize your assets: If you have any valuable assets, an extra car or valuable jewelry, that you can live without, consider selling these and using the cash to pay off some of your debt. Remember to start with your largest debt. These are usually the most challenging to get control of.
4. Consolidation Loan: If you have decent credit it should be relatively easy for you to obtain a debt consolidation loan. If you are a member of a credit union you may find they offer better interest rates. Banks have their own set of requirements for making loans. Lenders may require that this type of loan be secured by some asset.
5. Refinance your mortgage to reduce your payments: If you do not own a home you can try to apply for an income loan with a relatively ow interest rate. Lower mortgage payments will free up cash to help pay your debts.
6. Decrease your spending habits: Only spend money on your necessities. Limit your credit card use to emergencies or necessities. Self discipline will put you back on the right track.
7. Use your "extra" money: Whenever you receive "extra" money (refund, gift or any unexpected gain) use it to pay off a credit card bill or some other debt.
8. Pull cash from low interest savings accounts: The amount of interest you are gaining on those low interest savings accounts is probably far less than what you are spending in interest on your debt. It is better to take that money and pay off your debt.
9. Earn extra money: Try to increase your earnings by taking on a second job. Put your earnings toward your debt.
10. Use a debit card: This way you can spend only as much as you have.
About the Author:
Are you sick of buying financial guides that make great promises but just don't deliver on those promises? At the Finance Product Evaluations website, we offer unbiased reviews of many resources in the debt, credit, investing and real estate markets, to name a few. Visit http://www.financeproductevaluations.com to check out our latest reviews, such as our current top pick 24 Hr Credit Fix.
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