Debt Settlement Online & Debt Consolidation Help & Tips
Finance & Loans

Plan a strategy to get ahead of debt

April 8, 2014 by · Leave a Comment 

According to the U.S. Census Bureau, more than 69 percent of Americans carry some sort of debt whether it is credit card debt or student loan debt. It is a vicious circle that requires some pre-planning on your part to get ahead of debt.

Make a monthly budget and stick to it: You should not spend more than you earn a month. Preparing a budget help you to understand where money is going and help you to cut corners to save and pay off burdensome debt.

Negotiate your credit card and revolving debt: Credit card companies are known to charge outrageous interest rates based on many factors. You can negotiate your interest rate with your credit card companies. If a new offer comes with a lower interest rate for balance transfer, use that to get a lower rate or negotiate with your current credit card company using the new offer. However, before accepting an offer for lower interest rate for balance transfer, consider other fees associated with the transfer.

Stop charging new purchases to your cards: This is where your monthly budget and sticking to it comes handy. When you pay off a card, do not cancel it without considering its impact on your FICO score.

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