Debt Management
Debt Management
Getting into debt is easy but getting out of debt can be hard . The first step in paying off your debts is identifying what you owe , such as student loans , lines of credit and credit card balances .
Once you know what you owe , you can include debt payments into your monthly budget .
6 ways to reduce your debt : ( From GetSmarterAboutMoney . ca )
1 . Pay at least the minimum on each debt : Each month , pay off as much of your debt as you can . Pay at least the minimum amount on each loan which will protect your credit rating . If you can afford to pay more , pay down the loan with the highest interest rate first . As you pay off each loan , start paying more on the next debt in line .
2 . Ask for a lower interest rate : If the first person you talk to can ’ t help you , ask to speak to their supervisor . If you have a good record of paying on time , they may be willing to reduce your interest rate to keep your business .
3 . Stop using your credit cards : Put away your credit cards somewhere safe and don ’ t use them to make any more purchases until you ’ ve cleared your debt .
4 . Consider a consolidation loan : You may be able to reduce your interest charges by grouping all your debts into one low-interest loan .
5 . Trim your budget : Could you cut back on things like eating out and other optional purchases ? Trimming your budget will free up more money to pay down on your debt .
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6 . Talk to a professional : Non-profit credit agencies help people work through their debt problems . They can help you develop a plan , reduce your interest costs and get out of debt over time .
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