You’re up to your eyes in debt and don’t see a way out. You’ve sold some of your belongings, created a realistic budget, eliminated unnecessary expenses, started putting a little extra on your bills each month, and found ways to save on your monthly costs. While these strategies have helped on a minor scale, they’ve barely scratched the surface. Your debt has gotten so out of control; you have no idea what to do.
Lots of people have found themselves in this exact position with the crazy state of affairs and the upcoming presidential election. They’re drowning in debt and overwhelmed financially. Short of letting everything fall apart, it is essential to find relief. Fortunately, there are tons of ideas to reduce your debt faster and ease your stress. Here’s a look at some you may not have considered.
Talking to Creditors
Ignoring phone calls from creditors, service providers, and other bill collectors are common. Since they’re only reaching out to collect a payment you don’t have, why bother picking up the phone? While this may seem logical, ignoring your financial responsibilities has serious consequences. You’ll end up with higher interest rates, late fees, a negative credit history, lawsuits, foreclosures, repossessions, and much more.
What most fail to realize is that talking to creditors is to your advantage. When you speak up and let them know what’s going on, they are often willing to assist. From deferred payments and extended arrangements to lower interest rates and the removal of late fees and penalties, creditors have several options to help their customers get back on track. The sooner you speak up, the easier it is to get your debt under control.
Juggling five or more financial accounts with varying interest rates, due dates, and balances is a lot. Before you know it, the debt is so high that you can’t afford to keep up as you should. While some people contemplate filing for bankruptcy, debt consolidation could be a more comfortable solution.
Sites like MemphisAssociates.com provide debt consolidation services for individuals who can’t manage their growing expenses. As financial experts, they can help you to lower your debt while paying it off faster. They’ll eliminate your high-interest rates, penalties, and late fees and combine your debts into one low monthly payment. This practice makes it easier to manage your bills and pay them off sooner.
While you may not want to hear this next tip, sometimes it’s the most effective way to get out of debt faster. If you’re living in a home, driving a car, or leading a lifestyle that you struggle to maintain, perhaps you should consider downsizing.
For example, selling your home and relocating to a smaller house or apartment could prevent you from going through the expensive and grueling foreclosure process. If your car payments are stretching your purse strings too tight, selling it and using the cash for a used vehicle that you can pay in full eliminates a debt. When you have fewer expenses, you can then use the additional funds to wipe out the rest of your debt and start fresh.
Do you have a hard time managing your finances? Maybe you find it challenging to remain disciplined and stick to a budget? The truth is, managing money isn’t easy. Sometimes, all it takes is the support of someone else to get on track. Hiring a financial advisor could be the accountability you need to get it right.
There’s a common misconception that financial advisors are only for the rich and famous. On the contrary, they can be instrumental to the average working person. An advisor can help you analyze your finances, pinpoint areas of concern, develop a debt and savings plan, and secure your future.
If you’ve tried basic methods to reduce your debt with little to no success, perhaps it’s time to dig a bit deeper. Whether you try and negotiate with your creditors, consolidate your debts, consult a financial advisor, or downsize, these tactics generate outstanding results.