Mismanagement of debt can lead to long, sleepless nights and great financial and emotional stress. Not to mention they keep you farther from financial freedom. Here are tips on better handling your finances and existing debts.
The first advice is to prioritize your payments. Focus on keeping current on secured debt like auto loans and mortgages. Give high priority to debts related to necessities such as utilities and those you can't just let go of, including student loans and unpaid federal taxes. The next priority will be unsecured credit-card debt.
Second, budget and negotiate. For example, don’t underestimate the power of speaking with your credit card company to request for a lower interest rate. Do not wait until you fall behind on payments; you'll get more yes answers and cooperation if you're still current with payments.
Another tip is to consolidate your obligations. This could be done by putting multiple credit card and loan bills into one loan with a single monthly payment. One way is to combine student loans, as consolidating them allows for a weighted average of all interest rates. Another is to transfer debt to a lower-rate card, as some credit cards offer a zero-percent interest rate on balance transfers for a limited time.
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Finally, hire a credit counselor. Doing things on your own can sometimes get too nerve-wracking. A counselor will have a debt-management plan in mind and will negotiate on and in your behalf with most creditors to lower rates and eliminate late fees and other penalties.
Performance Settlement helps clients consolidate and pay off their debts through strategies and solutions tailored to their needs, including the establishment of a third-party trust account. For similar reads, visit this blog.
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