Are you looking for way to get out from underneath your debt? Luckily there are a good deal of ways to free yourself from debt. For most folks, eliminating debt is a challenge that appears to be far off the beaten path. But not for person with determination and who is willing to take massive action. Just reading the tips listed below can help you to see that it may be a lot easier than you ever imagined. Here now are three ways to help you eliminate your mounting debt.
Get Into the Habit of Paying More Than the Bare Minimum
Like the majority of credit card holders, you are in the habit of paying only the minimum amount required every month. This is typically between two percent and 3 percent of the outstanding balance. But here’s the kicker: The longer you take to pay off a balance, the more interest the lender makes. This also means you have less cash in your wallet. Get out of this viscous cycle and pay as much as you are able to comfortably. Try to double you minimum payment and take a close look at your expenses to see where you can find money. A little sacrifice can go a long way in helping you to pay off debt.
Work with Your Creditors to Renegotiate Terms
If you don’t have a 401k that you can borrow from, no savings, and couldn’t possibly squeeze another dime out of your relatives, you may want to renegotiate terms with your creditors. Be honest with your creditors and tell them about your financial situation. Ask for a lower repayment schedule that you can meet and see if you can get a lower interest rate.
Tap Into Your Life Insurance Policy
If you have a life insurance policy with a cash value, you can borrow against the policy. While it is true that you are borrowing your own money to pay off debts, the interest rate is much better than commercial rates. Plus you have more flexibility in repaying the loan. Be sure to repay the loan, because if you pass away – before the money is repaid – the outstanding balance, in addition to interest, will be taken from the face value of the policy.
Armed with a plan and the right information you can virtually eliminate all your debt, meet your financial goals and get a better outlook for the future. Now you can make a truly informed decision with the window of opportunity found here. Create a better solution for fighting debt and do not underestimate the value of sound financial planning.