what to do to get out of debt?
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In this growing inflationary period, trying to control our finances and get out of debt seems impractical. However, with the expert guidance of debt management agencies, it really is possible to lead a debt-free life.TRANSCRIPT
What to Do to Get out of Debt
Introduction
In this growing inflationary period, trying to control our finances and get out of debt
seems impractical. However, with the expert guidance of debt management
agencies, it really is possible to lead a debt-free life.
Debt Management - the Ultimate Resource for Getting out of Debt
Debt takes control of our lives before we even realize it. Imagine waking up one
day and realizing that all your credit cards are maxed out and the creditors are
flooding the phone with calls about their payments. Sound like a nightmare? You
certainly don’t want to go through a situation like this, right? Well, you won’t have
to with effective debt management solutions. Here are some strategies that can
help you get out of debt.
Lay Down a Debt Payment Plan
The first step any debt analyst will suggest is to set up a payment plan for your
debt. It will help you keep track of your entire pay off process. You can analyze how
much you are paying currently and how much longer it will take to pay off the debt
completely.
Settle Old Debts First
Non-payment of debt for long periods of time can have a negative impact on your
credit report. That’s why debt management experts recommend dealing with old
debt first. If some interest rates are higher than others, you can tackle one at a
time. Once you pay off one, you can move to the next highest priority debt on your
list.
Use Debit Cards Instead of Credit Cards
Credit cards give us the freedom and power to purchase more than we require,
which often leads us into situations of debt and bankruptcy. So, to avoid this, it is
highly recommended that you restrict the usage of credit cards as much as
possible. Instead buy things with your debit card so you are paying through your
checking or savings account. In this way you will be cautious about over spending
and will be able to stop accumulating more debt.
Reduce Debt-to-Income Ratio
Your debt-to-income ratio mirrors your financial situation. The lower your debt-to-
income ratio the higher your chances of becoming debt-free sooner. Consider this
the mantra of debt management. A lower DTI ratio will also help you qualify for a
mortgage loan. So, try to keep the DTI ratio within 30%. If by any chance the ratio