KWe all want to get out of debt. Lower payments and more room in our monthly income to do other things is the goal. But, how do we get there? Many people have tried to pay off debt in the past and failed. Try these credit card payment solutions that really work to make 2017 your debt free year.
Credit Card Payment Solutions That Really Work
First, take a look at your budget. Determine exactly how much your debts are costing you. How much of your debt takes from your income? Do you have any income left over after debt payments and living expenses?
Now you know how much you are currently paying and have left over. Consider the debt snowball tactic. Choose the debt account with the lowest balance. Use all the extra money you have each month to that one account. Continue to minimums on all other accounts. Pay off each account using the snowball method.
Another option is to consolidate your debts into one. Know what to look for to avoid pitfalls. Choose a consolidation company that is backed by the Better Business Bureau. This makes sure they are reputable. Look for companies that offer interest rates lower rates on your current cards. Be sure to ask the company about automatic payments. This prevents you from missing a payment and being hit with penalty fees. Also, you will need to cut up the old credit cards. However, don’t close the accounts. Your credit score will benefit from open and paid off accounts.
Ask yourself why you want to be debt free. If you don’t really have trouble paying your debt you may be looking to boost your credit score. Also, you could be you wanting to be debt free before buying a home. All good reasons to pay off your debt. If you want to be debt free because you are missing payments and risk losing assets you need to speak to a Houston bankruptcy attorney first. These milder solutions aren’t going to solve your serious debt troubles.