Your 5 Step Guide to Getting Debt Relief Fast
Carrying balances on multiple credit cards is stressful and expensive. But it is possible to get debt relief even with those challenges. 5 Step guide can help you develop a plan to pay off your debt.
Step 1: Stop making it so difficult to get debt relief
The only way to get out of credit card debt is to stop creating new debt while paying off what you owe. This means you need a budget that covers all your expenses and builds in emergency savings.
Step 2: Create a budget that’s optimized for getting out of debt
You need to get a budget in place
1. Total up all your monthly income
2. Write down all your expenses, even the little ones.
3. Total up all your expenses and subtract the total from your income.
4. If you spend more than you earn, it’s time to cut back.
Gather up your most recent credit card statements to write down the following for each credit card:
1. Current balance
2. Current monthly payment
3. APR (interest rate)
4. Status of the account
Step 3: Take stock of your debts and decide on a repayment strategy
Step 4: Set up a debt reduction plan
This is where your budget comes in because minimum payments aren’t going to help you get out of debt quickly. Instead, you need to put as much money as possible towards paying off one debt at a time.
Step 5: Explore options for debt relief
Let’s go over the most popular forms of debt relief and the best situation to use each one.
This strategy works best if you have large sums of free cash flow to make the largest payments possible. You also need excellent credit to qualify for the longest 0% APR period possible.
Credit card balance transfer
A personal debt consolidation loan can be a great option for debt relief if you have good credit and a stable budget. You use the funds from the loan to pay off your credit cards.
Debt consolidation loans
Nonprofit credit counseling services provide a debt relief program known as a debt management plan. The credit counseling organization helps you set up a repayment plan that your creditors approve.
Credit counseling and debt management plans
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