Overwhelmed by your Debt situation and don’t know where to start?
This is your opportunity to Learn the Secrets of the Credit Industry and Get Debt Free Years Sooner.
The Journey to Credit Debt Freedom Can Begin with One Step.
Imagine how it would feel never to worry about debt again.
But it is easier said that than done, right?
Taking a cold, hard look at how much you really owe can be sobering – yet empowering. You’re taking your first step from being in the red to getting back in the black.
Here are a few simple steps you can take to start taking charge of your credit debt:
Get a copy of all 3 of your credit reports – annualcreditreport.com
The Fair Credit Reporting Act permits consumers to request a free copy of their credit report once every 12 months.
- Lay it all out
By using your credit reports as a guide make a list of all the debt reported on your separated credit reports; not all creditors report to all 3 credit reporting agencies. Make sure to check for Unpaid Collections and Unsettled Judgments section of your credit report.
- Prioritize your debts
Pay off the highest-interest debts first; usually those tend to be credit cards even if they have low balances, before tackling the five-figure line-of-credit balances. Your highest interest rate debt is your most expensive debt.
Car loans are particularly important to scrutinize, remember you are paying interest on a product that depreciates as time goes by. (watch out for my article on automobile financing sources – the pros and cons)
Recording your balances in a meaningful and organized way will help you to track where you have come from and where you are going.
- Assess where you spend – and where you can save
By using your credit reports as a guide find out how much you spend each month and think about where you can save. Write down what you spend on, starting with your Mortgage, Credit Cards, Personal Loans, ALL your Debt Payments.
- Make a household budget
Sit down with your family and prepare a household budget. But first, do not forget to study your credit report, work your way down list of creditors and outstanding balances. Prepare a detailed budget that allows you the opportunity for savings on the interest rates. Try to start making extra payments through the month on the higher interest rate debts. This would also help you see your spending pattern and identify where to can start making small changes in your spending habits.
Don’t forget to include the following when creating your budget:
Car insurance and license
Car repairs and service
Entertainment, recreation, movies
Medical expenses, prescriptions, eyewear
Newspapers, magazines, books
Property and contents insurance
Savings (bank account, 401K)
Utilities, such as water and electricity etc…
Can’t find a Credit Article about a subject you are interested in? Need Help with your Credit Problems?
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Be Credit Wise! It is far smarter to take the time to deal with the problem than hoping for the best.