Sam
17
All posts from Sam
Sam in Stack That Money,

​Tips On How To Wipe Out Debts

Tips On How To Wipe Out Debts

Are you tired of trying to make ends meet, which seems impossible, when you are faced with a major repair bill? Believe it or not you are not alone, since the prices of groceries and monthly public utility bills are continuously increasing, without notice. There are many ways to wipe out your debts and below you will discover a few tips to help you out along the way.

Budgeting

If you have not yet devised a monthly budget, you should do so immediately. This is the only way to be able to keep up with outgoing payments and incoming cash. It is vital to develop a financial budget that is suitable for your needs, so be sure to include grocery spending, monthly mortgage and debts, clothing, gas, and other spend outs that you may have.

Selling Non-Driven Vehicles

Many individuals will hang onto their non-driven vehicles, because they use them as part of a backup plan, when their main transportation breaks down. Of course, this is not to say that you will ever need 2-3 extra non-driven vehicles, because the likelihood will be very low. Instead of leaving these vehicles sitting around your home, you should consider selling them. This will slice your auto insurance and taxes in half, which will save you a lot of money.

You will feel a flood of relief, when you see your new budget, after you remove these debts from your monthly payouts. You can put the extra cash from the sale of the vehicles and savings from the monthly payouts into a savings account, which will come in handy on a rainy day.

Consider The Payment Protection Option

Many consumers wind up suffering from debt, due to excessive credit card payments. Everyone understands that basics of credit cards. The monthly payment must be made or your interest rate will increase the amount owed. Under some circumstances, such as losing your job or being forced into a lengthy period of hospitalization, you may not be able to pay your bill. This is where payment protection comes into play. Although each card provider offers different programs, payment protection can protect you from incurring fees for up to 24 billing periods. This can give you the ability to get back on track, without suffering from interest fees.

Getting Rid Of Your Cards

Credit cards can be very helpful, but they can also be double-edged swords. With this in mind, you should consider getting rid of your cards and going back to cash only! Although credit cards are very convenient and allow you to spend, without having money, this can cause you to sink deeper into debt. With physical cash, this is never a problem, since you’ll only be able to buy, until your money is gone. Hiding your credit cards or cutting them up is highly recommended.

Conclusion

There are many individuals, who have gotten themselves into horrible debt. Although it might seem like an uphill battle, it is one that is doable! Keep your head up, build an effective plan and use the information above to help you climb out of debt more rapidly! By doing this, your debts will slowly erode and your credit score will improve immensely.