Easy Guide to Smart Credit and Debt Management

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credit repair, debt consolidation, IRS tax lien

Millennials Personal Finance Fitness Guide

Top 15 Ways to Keep Your Credit Card Debt and Personal Debt Under Control

With the booming new Trump economy…

…many millennials are now able to crawl out of their parents basements and find a job for the first time in their adult lives.

But having a paycheck and this new found wealth also creates the temptation for impulse purchases and to buy more than the money you take in.

If these purchases are being purchased with a credit card the bills could rack up much faster than the incoming paychecks.

If you find yourself struggling to pay off your bills at the end of each month and are in the verge of accumulating large debts…

…then you will really need to read through and acquaint yourself with some easy tips to keep your debts under check.

Ranging from credit card debts, student loans, mortgage and other personal loans, everyone is sure to be burdened with some form of loan and debt in their lifetime and try their level best to stay afloat.

In order to pay off bills you may be working night and day, stressing yourself in jobs that you might not even like.

But if you learn to keep yourself debt free, you might not require to sign up with any credit repair programs, thus spending your hard-earned money in anything other debts.

By adhering to the following steps, you can keep a track of your earnings and spendings and keep your debts at bay.

Here is the Deal:

#1 Try to Avoid the Creation of New Debts

You may be aware of multiple ways to increase your income and earnings,

but are you confident enough that you would never fall into the trap of pending payments and mounting debts?

Are you trained in handling money or living within your means?

If not, you may think that you can go for smart credit repair services from firms, by hiring them and letting them take care of your issues.

But it would be a great help to yourself if you manage your payments and completely avoid creating new debts to pay.

When you have a choice between keeping your monthly payments at minimum and paying hefty sums just to keep up with your love for luxuries,

choose the former.

In the end, financial peace of mind matters more than materialistic pleasure.

saving money, credit consultationMake peace with debts to make peace with your life.

The more you avoid buying things on credit, the better it will be for you.

Try to minimize credit card usage and you will see a significant change in your financial stability.

2. Prioritize Debts Based on Interest Rates

If you create a habit of prioritizing debts and listing them out based on the rate of interest charged against each of them…

…you would get a clear picture of what debts to deal with first and what can be taken care of later.

Clearing off debts with higher rate of interest should be at the top of the list as you will be paying it off first.

Rate of interest is an indispensable thing you need to understand as this acts as a weapon in the hands of banks and financial institutions…

…that stalk you  when you delay or are late with your payments.

You must be aware of all the rates of interest offered against any credit card or loans that you may willing to apply for.

Rate of interest forces you to pay more than the actual loan amount and squeezes out all your money that you worked hard to save.

3. Keep your Interest Rates Low

In case you fall into a situation wherein you are forced to buy stuff in credit or you require an urgent loan…

…you have to be smart enough to figure out a way to get the lowest rate of interest for a considerable duration until you clear off your payments completely.

Alternatively, you can reduce the interest rates of your credit card by choosing a balance transfer.

That is, you can move your credit card to another bank where they are charging you low rates of interest in order to make you their customer.

Just ensure to read the terms and conditions cautiously so that you do not overlook any hidden charges that tend increase the overall payment.

4. Have a Proper Spending Strategy

It is good idea to have a written record of your total income minus your expenses and taxes.

Ensure to write down the minimum payments you need to make on all your debts.

Take a look at your monthly expenses and rank them in the order of urgency and importance.

Next, review the list of items present at the bottom of the list and decide whether they are necessary “must have” items that outweigh your financial stability.

Thus, you will have a strategic spending plan such that your expenses will be lower than your monthly income.

Now, you need to prioritize your income and appropriately decide how much amount are you willing to shell out on each area of expenditure.

shopping money,debt solutionsRemember, you need to allocate money for:

  • rent,
  • groceries
  • shopping
  • eating out
  •  other leisure activities or entertainment

you must strictly restrict yourself from dipping into other areas for money,

Once you have exhausted the allocated money for your monthly expenses, you are done spending for the rest of the month.

This greatly helps you have a control on what and how much you spend, while helping  you from overdoing it.

Such thoughtfull and strategized way of spending keeps you in good shape financially for emergencies.

5. Have a Repayment Schedule

Initially you need to focus on covering the minimum payment on each and every debt you owe.

If you by chance miss a payment, you incur late fees and they increase rather quickly.

This also involves making your minimum payment on the debt with a huge rate of interest.

By the the time you go for the debt with a high rate of interest,

you will be adding the amount that you saved from your strategic spending plan that you created previously.

6. Pay Higher than the Minimum

It is always better to pay more than your monthly minimum balance that you allocate to your credit card payment.

This will hugely affect your interest rates as if you pay more than the minimum amount you shell out each month.

It will also help pay down the principle of the debt at a much faster rate.

If you look at the credit card statement, you will see a noticeable drop in interest rates when you make a higher payment than the minimum amount.

You will also save yourself the time and stress of needing to search for a top rated credit repair service like CuraDebt for example.

Curadebt can  help you with credit repair or debt consolidation, IRS tax liens as well as other financial  issues you may be facing.

Every extra dollar you add up to the minimum payment will only help you reduce your payment balance and lessen your rate of interest payments.

If you were to keep this up, before you know it your credit card debt will be paid off in no time.

7. Opt to Combine and Conquer with a Debt Consolidation Loan:

It is absolutely fine if you consolidate and merge your higher-interest balances into a single one on a lower rate of interest.

This will enhance you to pay your debts faster without increasing the amounts.

This will lead to a fast credit repair as your credit scores will improve and you will also be relieved out of your credit debts quickly.

It gets better:

 Two easy ways by which you can consolidate credit debt:

credit score, tax liensYou can take advantage of the low balance transfer rate and remove debt from high-interest cards.

But be aware of the fact that fees applied for balance transfer are mostly 3–5 percent,

and the amount you save from the lower interest rate can also be higher than the transfer fee.

If you have equity in your home, it can come handy to make the credit card debt payment.

Home equity loans offer lower interest rate than the rate charged by credit cards.

Although there are closing costs which apply on home equity loans, one major benefit is that the interest payments on home equity are tax deductible.

Of course, all this will come handy only if you have a control on your spending and expenditure.

8. Ensure Your Credit Card Balance Is Below 30% of Credit Line

In order to keep your credit score as high as possible with out any red flags is to keep your overall credit card usage to 30% or less of your total alloted credit limit.

…you must strictly adhere to this or the banks will think twice when you apply for a new loan.

It is acceptable that often times you may not be able to pay from your pocket when you require something urgently and will have to venture into the forbidden area of credit card usage.

In such cases, the least you can do is to keep your credit balance below 30% of the allowed credit line.

This will surely help you in the long run, or else you will end up compromising your credit score.

Jared Paul, the founder of Capable Wealth and a certified financial planner,

stated that if borrowers kept their credit card balance below 30%, then they are seen as good stewards of their credit card usage by the creditors.

“It also might not be a bad idea to pay the minimums for a while so you’re showing a longer history of on-time payments,” he mentioned.

Further, he also added that “If you just have a credit that’s forever with zero balance — it’s not a bad thing, but it’s not a way to show that you’re paying on time.”

Thus, rest assured that a credit card balance of 30% or less of your total credit line on your card,

will project a positive image of you to any future lenders when they review your credit report.

9. Search for a Technique that Best Suits Your Credit Needs

Having balances across multiple credit cards is not something to be surprised about.credit score, credit balances, bankruptcy

In todays modern economy, it is almost inevitable to survive without a credit debt.

But often seeing such balances can become extremely worrisome in case your monthly income is the only source of your survival.

Now paying off the highest amount first, followed by the lower ones may be the usual way of tackling debts.

But if the balance is really high, it would be a great idea to eliminate balances from lowest to highest.

This is often called the “snowball” debt payment strategy.

10. What about Making Bi-Weekly Payments?

This might seem an impossible feat, but it will be extremely helpful for you if you follow it ardently.

Submitting half of the payments to the lender bi-weekly instead of a big, monthly payment will ease your debts.

But here is the kicker:

Doing this will have the following benefits:

Accumulation of lesser interest as the payments will be more frequent

You will make extra payment; since one year consists of 52 weeks, you will make 26 yearly payments.

Following this method for the entire duration of the loan could reduce your over interest payments by a noticeable amounts and save you several months’ payment.

Before taking such a step, discuss your plan with your lender and only then proceed to make

bi-weekly payments.

Be sure to check with your lender if there are any pre-payment penalties in your contract prior to accelerating your loan.

11. Round Off the Payments

One of the best method to pay off debts quickly, without feeling the strain of it every month is to round off the amount to the nearest decimal.

This will not only reduce your overall interest by some significant amount, it will also help you knock off the payment earlier than the stipulated duration.

It is very similar to the bi-weekly payments you plan to make.

12. Keep Some Extra Money

You can always keep some extra money or make some extra income and use the same to pay off your debts.

Anytime you can opt for selling your unused stuff online, save those extra bucks and fit them into the monthly payment that you give off for debts.

Instead of going for impulse buying of things, you could impulse save for a change.

Even if the amount made through online sale do not seem large…

…they can surely come handy in sort or other.

In fact, you can direct all the extra income you make towards paying off your debts, so that you remain debt free.

13. Take Advantage of the Paperless

You may find some additional discounts at times when you choose to sign up for automatic payments and electronic statements.

This is a very beneficial factor for the lender as he does not have to bother with mailing out a paper notification each month.

14. Reward Your Progress

You should always set a goal and create a milestone of a target that you wish to achieve.

Of course you should try your best to stick by your targets and finish it off successfully each month.

But when you strive so hard to make both ends meet and also religiously pay off for your credit cards monthly…

…you can choose to reward yourself, your diligence and your patience.

A reward need not cost you money, but if it does then ensure that you have some back up to rely upon.

Occasionally, rewarding oneself is crucial to keep up that motivation and spirit to continue making payments without any lag or lapse in between.

15. Consider Refinancing Your Loans

This is one of the easiest and best ways to reduce the payment, save interest, and complete any loan in half the time period (especially when you have semi-good credit).

Numerous local banks and credit unions tend to offer quite a low rate of interest mortgage or home equity loans and car loans.

This type of refinancing helps you reduce the monthly payment amount to a significant level.

One should seriously consider this method in order save oneself from the clutches of mounting debts.

Now that you have gone through the various steps to pay off your bills on time, you can rest assured that if you follow at least half of the mentioned methods…saving, credit card, credit tips

…you would soon be debt-free.

But you must consider one major point here.

The amount of resolve and dedication you show in clearing all the debts is incredible,

and of course your patience is put to test innumerable times.

Thus, you should not be too harsh on yourself.

You can be kind and reward yourself with a few things, while feeling the staisfaction of creating a debt reduction plan and sticking with it until you have achieved your desired results.

Want to know the best part?

Benefits of Paying Loans Early

Let’s face it. Being in debt “SUCKS”!

It you can get a grip on your expenses so that you can accelerate the paydown of your debts with an end date in the not to distant future…

…you can then actually heave a sigh of relief.

You always have in the back of your mind the stress and burden of your debts.

The sooner you clear off your loan and credit card payments, the better your life will become.

There is no greater feeling than being debt free and bearing no obligations to anyone.

Not only will early clearance of debt save you money and decrease the overall term of the loan.

Once you are no longer putting your disposable income towards credit card debts,

you can then start putting that extra money into a savings plan.

You can use your savings to do what you like, such as travel, your hobby and sometimes as a savings for future.

Being debt free relives the stress and burden on your nerverous system and actully allows you to live a happier, healthier life without the worry of making payments to some banker.

What is the bottom line?

goals, financial goals, debt reliefDo every thing that you can to avoid the “debt trap”.

Like hungry vultures, that banks are just waiting for you to miss a payment…

…or be late on a payment so that they can jack up your interest rates as stated in the fine print that is so small no one can read it.

Once that happens, then you have started the debt avalanch that wil eventually catch up to you and bury you.

So be smart about your new found buying power and use your credit carefully.

Always, always, always pay your bills on time.

Late payments are the number one item that will knock your credit score down.

Learn to pay yourself first and create a savings / rainy day fund for the inevitable emergency that will always come at the most inconvenient time.

Put yourself in a financially sound position so that you can rely on your retirement benefits and other small savings to live the life of abundance that you so rightly deserve.

If you do find youself needing a FREE credit repair consultation or debt consolidatio loan then

lokk no further than Curadebt.

Curadebt is one of the nations most trusted name in credit repair, IRS Tax Liens, and debt consolidation.

They are not available in every state so make sure that they are licensed in your state.

The states Curadebt does not service are: Co., Conn., Ga., Iowa, Idaho, Il., Kansas, North Dakota, New Hampshire, So. Carolina, Vermont, Washington, Wisconsin, and West Virginia.

Here is a very wise quote from Thomas Jefferson, “Never spend your money before you have earned it”.

And from more recent times, to quote Dave Ramsey, “There are no shortcuts when it comes to getting out of debt.”

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www.us-debt-free.com

 

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