Gain control of Debt Now

Gain control of Debt Now Tired of being in debt?   Ready to gain control of debt starting right now?   Most people are, but they lack clarity on what they can do to stop the debt cycle.   Read on for six tips to get started! Tip #1: Know how much is earned and spent every month Use debit card for all spending to keep track. Cut  any  and all unnecessary spending. Tip #2: Determine how much is really left over to repay loans and debts After necessities like food and housing,  how much is really available to repay debts?   Tip #3: Start with the highest interest rate debt Credit cards may be the highest interest rate offendersan average  19.1 percent APR! Negotiate a lower interest rate with the lender. Propose more favourable financial terms in writing. If credit card debt represents the bulk of whats owed, consider transfer of debt from one or two cards to a new zero-interest card. Consolidate all debts into one loan to lower monthly payments owed. Lock-in a lower mortgage rate to free up more funds each month. Use asset-backed loans, such as those requiring collateral (home or auto), with care. Tip #4: Free up additional cash In order to make more than minimum payments, consider sale of significant assets, e.g. automobile, jewellery, etc.: Consider a loan from an insurance policy. Request a loan from family if possible. Tip #5: Avoid new financial traps Compare all new loans carefully, including origination fees, interest rates, and terms: Avoid payday lenders (and all super-short-term lenders)rates can exceed hundreds to thousands of percent of principal! Avoid so-called financial advisers or money managers who charge fees for debt counseling assistance. Tip #6: Visit a no-cost debt counselor service Citizens Advice or Consumer Credit Counseling Service help to arrange a monthly budget and propose more favourable repayment terms to creditors. And heres some more insights: Dont let the debt PACMAN eat up your earnings and life. Photo Credit: Zopa.com