Most people don’t plan to develop a heavy debt burden, but sometimes it simply happens. Someone loses a job. An income contributor becomes seriously ill and cannot work. Jenny needs braces and Bobby grew so much recently that he needs a whole new wardrobe. However it happens, a financial difficulty leads to falling behind on debt repayment. The following will offer some insight about the best ways to pay down debt before the damage to one’s credit becomes irreparable.
Phoenix, AZ -- (SBWIRE) -- 01/28/2013 -- After using the credit cards a bit too often over the holidays, one is faced with a lot of debt to repay. The question is how to do it without breaking the bank. The best way to pay down debt is to do it oneself. To start, figure out how much debt one actually has and to whom it is owed. Next, put it in some sort of order, whether the basis is on interest rate or amount owed. Begin to pay off one debt at a time.
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If there isn’t quite enough money in the budget to do so, devise ways to obtain some to put toward debt repayment. Perhaps taking on a second, part-time job would help. Maybe holding a garage sale can contribute some earnings. Ask a friend or relative for a loan. If they can afford to do it, they usually will – without charging interest. Using the equity in the house will get rid of debt quickly, as will borrowing against one retirement account at work. Cut back on “fun” spending, such as going out to dinner and a movie twice a month, and put the money saved right toward debt. There are other ways to garner the funds required to pay off debt; be creative and the debt will soon disappear.
More of the best ways to pay down debt include taking out a small personal loan. Use the cash to eliminate the debt fast. Look into debt consolidation companies. These businesses add up all of one’s debt and then pay off one’s creditors, leaving one with a single monthly payment in an amount one can comfortably handle. If possible, when making monthly payments to creditors, send a bit more than the minimum amount due. Ten to fifteen percent more goes a long way to getting rid of the debt. Hiring a debt management service can help. These companies help one by organizing and prioritizing one’s debt burden, and then working with one to develop a feasible payment plan.
Credit-yogi.com, an online marketing service located in Pittsfield, Massachusetts, has more information about debt repayment. A knowledgeable, friendly staff member is always available to share it with interested parties.