Don’t let anyone tell you getting out of debt is impossible. As West Palm Beach bankruptcy attorneys, we’ve seen it happen time and again. We’re happy to share our wisdom with you to help you rid yourself of debt for good. By shaking common debtor habits — like avoiding payments and not saving your money — and following our advice, you can make the agony of debt a thing of the past.
Take It on Little by Little
This involves some careful planning, but it will be worth your time. It’s simple. Just figure out which debts you can afford to pay more on periodically, and then do it. More importantly, stick to this new payment schedule. Even adding a small amount over the minimum required payment will benefit you down the line. So, get started on your new plan of action as soon as you can. You’ll thank yourself later.
If you’re currently racking up substantial debts attributed to high interest rates, there’s a way out. There are two methods of bringing down the interest rates of your current debts. The first is exclusive to credit cards, which most Americans use and abuse. If your credit score meets the right criteria, you have the option of applying for a promotional credit card balance transfer. You might have to pay a small fee for each transaction, but you will end up with only one credit card bill and a greatly reduced interest rate. The other option is to obtain a consolidation loan with a lower interest rate, which will amount to great savings over the life of the loan.
Tackle the Big Guy
And by that we mean the debt with the highest interest rate. If you’re unable to consolidate your bills using one of the above described methods, establish a hierarchy for your payments. Use any extra money to pay off the debt with the highest interest rate, as interest is typically what causes the snow ball effect. Once that debt is paid off, move on to the next one with the highest interest. This method will allow you to stay ahead of your debt, rather than letting it take a hold of your life.
In spite of our best efforts, sometimes debt wins out. That doesn’t mean you don’t have options. For those struggling to stay afloat financially, bankruptcy can be a viable option. If this describes your situation, contact our skilled team of bankruptcy attorneys today for a free consultation.