Debt can alter your lifestyle and be extremely stressful. It can also affect your health. Some experts claim it can be harmful, both emotionally and physically. Long-term stress is said to be linked to increased blood pressure, high cholesterol, diabetes, obesity and more.
Wouldn't it be great if your debt simply disappeared? Unfortunately, that isn't likely. So what can you do about it?
Make a plan to pay off your debt or debts
If you have multiple debts, it may be wise to determine which debt needs to be paid off first, based on the amount, terms and interest rate.
Create a budget and determine how much you can afford to pay a month to each debt/loan. Many experts recommend paying off debts with the highest interest rates first.
Use automatic deductions.
Set up automatic deductions. This helps prevent you from coming up with excuses not to make debt payments.
Don't worry if your automatic payment is small. Every bit helps.
Slash your costs and alter your spending habits.
You may be on a tight budget. However, you can't eliminate debt if you don’t cut costs. Otherwise, it will take you a long time to pay off debt.
Evaluate your monthly spending. Cutting expenses leaves more money to pay off your debt. Cancel cable. Eliminate those morning lattes. Take a brown bag lunch to the workplace.
As for spending habits, this might involve credit card usage. Keep credit card usage at a minimum. Try to stop the unnecessary shopping, such as financing a furniture purchase or a new appliance. It’s often times best to eliminate debt, not add it.
Unexpected cash? Use it for debt.
You may be receiving a tax refund. There may be an inheritance coming your way. Maybe you earned $500 on a recent garage sale. Put it against your debt instead of dining at an expensive restaurant.
The above tips are primarily personal guidelines and personal action items. We may be able to help with additional solutions to reduce or eliminate your debt. Check out these opportunities below or talk to us and just tell us your situation. We’d like to help.
Obtain a personal loan to consolidate debt and pay off your debts faster.
Consolidation allows you to simplify your debt-paying plan. For example, you can pay off your car loan and an outstanding credit card with a personal loan. Then, you only have to keep track of one bill, due date and interest rate, as opposed to several. Higher interest rates can keep you in debt much longer. Your new personal loan often has a lower interest rate than the original debt or debts. Plus, your payments could be smaller.
Consider paying down your debt by refinancing your home.
Refinancing a home to consolidate debt is often overlooked. You can use your home's equity to get cash out to pay off some or all of your creditors. Your new refinanced mortgage may even have a lower interest rate than your outstanding debts. Plus, you've consolidated.
Turn a structured settlement into cash to pay off debts.
We can buy your structured settlement payments. Instead of the monthly payments you were getting, we give you a lump sum of cash. New to structured settlements? Here’s a quick definition — a structured settlement is a financial settlement, usually from a personal injury, insurance claim, or wrongful death lawsuit. Payments are made to the plaintiff over time, rather than in a lump sum. Learn more about structured settlement payments.
Talk to a one of our representatives today about debt consolidation, mortgage loan refinancing, or selling structured settlement payments (Nothing herein is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services).