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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