Are you buried under the debts of various loans? If yes, than probably you need a solution to get rid of them as soon as possible. Don’t let them turn into Bad Debts and make your life a hell.
The best possible way to get rid of them is pay them off as quickly as possible. If you want to, you can consolidate all of your loans and go for a Consolidated Debt Loan. So, before you go for a Consolidated Debt Loan, all you need to do is to prepare a list of all the debts that you have.
Another question must have emerged in your mind that how to prepare the list of your debt? Well, it quite simple; you can easily do that, and can be done by following some of the method as mentioned below:
· Prepare List of Debts:
Take out the list of all the credit card statements that you have. If you have more than one credit card, then be sure to gather the statements for all of them. Once, all the statements are gathered, calculate the total amount of your debt using it. Analyze your statements to find the amount of interest, which is charged over your debt. Thereafter, appropriately arranging it according to the priority of highest interest rate to lowest interest rate, would ease down your work of evaluating.
· Consult an Advisor:
Once the preparing of list is done, you can take appropriate measures by yourself which would help you in paying off the debts. But, if you are unable to think about any beneficent ways, it’s better to go and consult an adviser. Although it would cost you some money, it would prove to be fruitful in paying off your debt.
Now, that consolidating of your debts have finished, it’s time to repay them as soon as possible. To do so, all you need to do is to get a Consolidated Debt Loan. But, before you apply for a Consolidated Debt Loan, you should do some research regarding the loan. You should know the details about the rate of interest that they would charge on your loan. And you should also know about other terms and conditions on which they would provide you the loan.
After finishing your research, it’s time to apply. Most probably the answer would be a ‘yes’, but in case you don’t get it, try for something else like agencies for credit counseling. But if your loan has approved than you should pay off the older debts immediately without any second thought. Try never getting down under the burden of the debt again.
Always be careful of the rate of the interest charged on your loan, and also look if there’s any hidden fees charged on you.
Try to pay an amount every month, which could easily pay off your debt in short span of time; i.e. keeping a high amount for your monthly EMI (your monthly repayments), which will slash down the duration required to pay off your debt. Try inculcating new habits, like not using your credit cards for unnecessary expenses. It should be kept in mind that you have taken the loan to remove the burden from your head, and not to increase it.
Most importantly, if you are going to consolidate your debt, pay off the debt in full. Most people who take out consolidated debts think they have debt relief and go on a spending spree with their perceived new money. This is a fallacy of consolidated debts. In theory they should work, but you should always take into account the human factor in paying off debt. Most people who take out consolidated loans are still in debt years later time because they haven’t changed their spending habits.
Jimmy Scarff paid back over $7000 in loans after he started up a business that failed. He has now paid back all of his debt and now encourages other people to do the same.