According to the study by the American Household Credit Card Debt, each U.S. household carries an average debt of $15,355 in credit card and a total debt of $129,579. This statistic shows how much rooted debt levels are among Americans. However, this doesn’t mean anyone in debt is indebted forever. Instead, with careful money management strategies, you can liberate yourself to a stable financial freedom.
Debt is perceived as normal by most people, and some have affirmed that without few instances of borrowings and in arrears, they wouldn’t have gained some things in life. As that might be partly true, you are encouraged to do proper household budgeting on everything involving money. Borrow when you really need to borrow to avoid unnecessary money stress. With a sound help managing debt and feasible debt relief options, you’ve got nothing else to lose than your debt.
What’s Your Debt Level
The first step in debt liberation is to know the exact amount you owe others. These debts include creditors, home mortgage payments, credit card bills among other debts. Carefully calculate your debt and update your credit report list if you periodically pay bills.
Honor Bills on Time
About 20% of Americans make late payments on their bills. Often, these late payments attract fee penalties, which makes it even harder to pay off debts. Interest rates are common in loan and home mortgages and with every failure in making payments, these interests gradually increase. It’s always advisable to set reminders and try as much as possible to make monthly payments. Most of these creditors will look at how consistent you are in your interval payments, and if your record is good, they can be a bit lenient.
Have a Monthly Payment Checklist
Assumingly you receive several paychecks. It is vital you create a payment list that dictates which paycheck pays which bill. On the list, you can note down debts due dates with their level of urgency. This is a practical way to help managing debts seamlessly.
Consolidate Your Debts
In debt consolidation, also referred to as debt management consolidation, you can make substantial progress towards clearing off your debts. Here, you can subscribe to a program that will enable you to pay your creditors. However, not everyone qualifies for such programs. If you have unsecured debts or if any of your debts have tax debt, your request for debt support will not be granted. Other reasons that may hinder your application include failure to pay parking tickets and unpaid child support.
Although there are no guarantees that these measures will work because of different reasons such as state laws, type of debt, debt and credit history among others, you can alway consult your debt counselor for other options. These options may include cutting down on your personal expense to save money, selling off parts of your assets to honor debts, finding a cheaper place to rent, or finding other alternative sources of income. The steps to help managing debts bring their fair share of stress, but it’s worthwhile than having creditors always on your neck.