5 tips for eliminating debt

Category: Debt

iStock_000046328720_Small

Have your loan payments gotten to the point where you can’t keep up? Even though you’re making timely minimum payments every month, do you find that it’s challenging to make any sort of progress? The following are some ways to help lessen or get rid of debt:

Create a plan

Make a list of everything you owe, and be sure to include details, such as the required minimum payment, payment due date, and interest rate. This will give you a clear picture as to just how much you owe on all your loans and credit cards, which can make it easier to make a debt repayment plan.

While looking at your list, you’ll want to come up with a strategy that determines how you want to tackle your debt and which accounts to pay off first. For example, you may want to begin with eliminating your balances from smallest to largest, or you may want to begin with the account that has the highest interest rate.

Pay more than the minimum payment

If it’s possible, pay more each month than just the minimum required payment, especially when it comes to high interest loans and credit cards. If you only pay the minimum, the money mostly goes towards interest, which means you won’t make much progress in bringing down your overall balance. Every little bit helps; even if you can just pay an extra $20 every month, you’ll get rid of that debt much quicker.

Make timely payments 

It’s very important to make sure that the bills for your loans and credit cards are paid by the due date each month. When you miss a due date, late fees may be added to your balance, making it that much more challenging to pay off your debt. Your interest rate may also increase. To avoid missing due dates, consider automating your bills so that your bank account is automatically debited each month on time.

Transfer balances 

If you have any credit cards with low interest rates (or you’re eligible for a credit card that offers a low APR, or comes with a zero percent introductory offer) you may be able to transfer the balances from high-interest credit cards to the accounts that have lower rates. The fewer payments you have, especially if the interest is lower, the easier it can be to get rid of debt. If you are getting a credit card that has a zero percent introductory offer, just remember to take note of what that interest rate will be once the introductory period is over. Unless you plan on paying off the balance completely by that time, you won’t want to open that extra credit card if the APR will skyrocket once that introductory period is up.

Contact Peachtree Financial Solutions

Another way you can get rid of your debt is by working with Peachtree Financial Solutions. If you’re receiving periodic payments from an annuity or structured settlement, you may have the option of selling those payments to Peachtree. By selling future payments to Peachtree, we can provide you with that money in a lump sum payment. This means that the money you would’ve received over the course of many months (or years) can arrive in just one lump sum. Imagine the possibilities: if you are deep in debt, you can finally pay it off and be free of it, once and for all. In fact, Peachtree has helped many people catch up on bills and get rid of debt by providing them with their money sooner in the form of a lump sum payment. We would also like to help you fulfill your goals of becoming debt-free.

If you’re interested in learning more, or have additional questions, we’d be happy to help. We can also provide you with your free quote and help you get started. Contact Peachtree Financial Solutions today!

Nothing above is meant to provide financial, legal, or tax advice. You should meet with appropriate professionals for such services.

Tags: balance transfers, Credit Cards, monthly payments

Comments are closed.