Once you’re in debt, it can be challenging to improve your financial health and get back on track. Your income will only stretch so far, and in the meantime, growing interest rates only make things worse. Luckily, there is plenty you can do to improve your current situation.
- Collect Your Debt Info
The first thing you need to do is collect all of your debt info together to gauge a full picture of your financial situation. Collect your bill statements for your credit cards and for your loans too. You should also gather together your credit reports and your credit score. With info like this, you’ll be able to check if you qualify to reduce your interest rates.
- List Your Income And Debts
Next step, create a list of your debts, including the interest rate, minimum payment per month, balance, and the creditor’s name. It’s helpful to create a target, for instance, a time-frame to pay off the debt. As well as your credit report items include any other debts such as medical bills or family loans. Compare these debts against your income to help you work out a monthly pay-off figure.
- A Stricter Budget
The only way to reduce your debts is to create a stricter budget and stick to it. So how can you do this? Well, one great way is to try out a budgeting app. There are a few different options available:
PocketGuard: Using PocketGuard, it’s simple to link your accounts, savings, bills, and loans on one app. The application suggests a budget based on your finances, which can be adjusted if you wish.
Mint: Mint allows you to log all of your expenses and accounts and check your credit score. You can set a strict budget, set financial goals, and track your progress.
Wally: Wally, is easy to use a budgeting app, which lets you monitor your earnings, supporting you to spend less. Wally is free to use, and the app also provides some great budgeting tips.
- Reduce Your Interest Rates
If you’re serious about reducing your debt, you should certainly look into reducing your interest rates. There are a few options to help you do so:
A balance transfer card: You could look into getting a balance transfer credit card. Ensure that the card offers a lower rate than your previous card (or a 0% rate as a special intro offer). With a balance transfer card, it’s simple to move your balances from your existing card onto the new card.
Refinance your student loan: Refinancing can help you reduce the interest you’ll pay on your loans. There are many private lenders out there who offer an excellent interest rate; all you need to do is apply and see if you qualify!
- DTSS Program
The Debt To Success System offers a number of excellent programs to help individuals access freedom and reach their true potential. The ‘Debt Discharge Membership Program’ can help you to free yourself from debt, including student loans, credit cards, and taxes. With a lower monthly payment, you can achieve improved financial health for you and your family. To read all about the full range of DTSS programs and the debt frame timelines, check out the following link www.dtss.us/program-timelines.html.