Four Tips to Be On Your Way To Debt Relief In Richmond

by | May 22, 2013 | General

Having a lot of debt can seem overwhelming and stressful, but it is very possible to manage this debt. By looking into Richmond Debt relief, you can pay down what you owe and eventually be debt free. Below are four tips to Richmond Debt relief.

Earn More: The most obvious thing you can do to get out of debt is to earn more income, so that you are able to pay down more of your debts. You can do this by taking a part-time job, by tutoring students, babysitting for people in your neighborhood, or selling unneeded items on eBay. It is important to take the money earned on these side jobs and apply it directly to your debt; do not be tempted to spend it in other ways.

Snowball Debt: A good tactic to paying down debt is to pay off debt with the highest interest rate first, this is referred to as snowballing your debt. You need to continue to pay the minimum monthly payments on your other debts, but pay the most you can towards the highest interest rate debts first. When you pay off the highest interest debts, you then tackle the debt with the next highest interest rates and continue down the line until you are completely debt free. Another version of snowballing is to pay off your debt that has the lowest balance and then work your way up through each debt, until you are able to pay off the highest debt.

Refinance: A great way to save money each month on your monthly bills is to refinance your home mortgage and to use that money towards your other debt payments. Since mortgage rates are at an all-time low, it is a great time to refinance and bring your monthly mortgage payment down considerably. Refinancing allows you to save several hundred dollars a month that can be applied to other debt.

Transfer Balances: You can try transferring balances from loans or credit card with high interests to your accounts that have zero percent or low interest rates. This saves the amount of money you will be charged each month for interest and will free up additional funds to be applied to your debts.

 

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