It is highly stressful to struggle with debt but the truth is that everything is going to be a lot worse when you do not take some positive steps to improve the situation you are in. Fortunately, there are various things that you can do right now. Also, always remember the fact that you are not alone. There are always solutions for every single situation you might be in. Crystal Clanton offers some advice below.
Always Face Facts
The first and most important step is to fully understand exactly what you are facing. Start by collecting your bank statements, see if paperwork is missing and open the bills that you might have ignored till now. The following step is to make a list of everything that you owe, together with interest rates. After all this information is gained, prioritizing debts becomes much simpler.
Work On A Budget
After you know the situation you are in, it is time to see how much can be spent every single month on debt repayment. If you have no idea how to do this, just use a free online budget calculator. Such a tool is basically looking at the total income you have and compares it with expenses. You then know how much remains. You take out a little to deal with potential unexpected financial problems and you see how much debt repayment power you have available.
The repayment plan that best suits your current situation is going to be easily calculated when you understand how much money can be spent on debt payment. You also manage to easily assess the spending habits you have. Through such budgeting you see what luxuries you do not really need. A simple step like taking a packed lunch when you go to work can save a lot of money on the long run.
Move To 0%
Whenever money is owed on credit cards that are expensive, see if the amounts can be transferred to 0% balance transfer cards. Such cards are going to eliminate the interest charges you have to deal with for a period of time. This guarantees all the money you repay will go towards fixing the financial problem you are faced with. The only problem is that you will always have to repay debt within offer period to fully take advantage of 0%.
In the event you figure out that you need more time to repay the debt, the best option is to switch to the lower rate credit cards. Some interest is still going to be paid but the rate is surely going to be a lot lower.
Look At Overdraft Options
Your debt problems are going to be exacerbated in the event you pay too much on overdraft. If this is what you think happens, see if it is possible to switch to 0% overdraft accounts. There are numerous banks that offer such a service. Just be sure that you take a close look at everything included in the contract you are going to sign.