If you are reading this, then it is highly likely that you, or someone close to you, are going through a difficult financial period to get rid of multiple debts. This is a problem that almost every adult in the United States is having. It is sad to say that it is a problem that is quite hard to deal with. Carrying multiple financial obligations can really break your life apart, put a massive amount of constant stress on you and leave you completely exhausted. It is important to understand the seriousness of the problem before it worsens. The sooner you start taking the necessary action, the better a positive end result there is going to be.
Know your situation
One of the most important things that you need to understand in your battle with multiple debts is that in order to have a better shot at getting rid of all those uncomfortable financial obligations, you need to be completely aware of your financial situation. What you have heard about other people’s struggles with debt and the various ways that these people were able to deal with all their obligations and repay in full the money that they owed can only tell you how global the debt problem is. Every person goes through life differently, that means that your financial situation is most likely different from the situation of every other person in the world. Which only means that the methods that have worked for someone else may not lead to a happy ending in your specific case. So to better your chances, it would be better to focus on your situation, and to go as in-depth as you possibly can to determine how can you get rid of all these debts and live a life that is free of debt.
Finding your way out of the financial darkness
If you are determined to get rid of all of your financial obligations to creditors, you need to have a strategy. You need to make a plan on how to achieve that goal. The first thing you need to do is to find out exactly the amount of money you need to pay to your creditors in order to get rid of all your debts. It is a good idea to use a debt repayment calculator.
Debt repayment calculator
The purpose of a debt calculator is to help you determine the exact amount of money that you owe to your creditors. To take advantage of this tool, there are three main things that you need to understand:
You need to be aware of your total debt amount
The first thing you need to do is to enter all the information that you have as debts. This includes all of your debt balances, interest rates that these balances have, as well as the monthly payments you are making each month. After you enter this information, the debt calculator will determine exactly how much you are going to pay on interest after you have repaid each of your balances according to your current repayment plan.
Play with the available tools to determine how different changes will affect your overall spending
If you feel like sticking to your current repayment plan is not the optimal way to go, you can try and make some adjustments to see how they will affect your interest rate and the length of the repayment period.
After you have created your own debt repayment plan, compare it with the results of your current debt repayment plan
Once you are done experimenting with the available debt calculator tools, check and see how your new repayment plan compares to the repayment plan that you are currently on. That way you can determine whether that plan is good enough to carry on with or if a change is necessary. And if the latter is the case, you need to take action to optimize your debt repayments, so that you can be able to get rid of all of your debt faster and easier.
When is it good to transfer your credit card balances?
A credit card balance transfer can be a very powerful financial tool if used correctly. If you are able to qualify and transfer all of your current credit card balances into a new credit card with a 0% interest rate, then you will really be able to take advantage of what this service has to offer. Even though that interest rate percentage will only stay that low for a limited period of time, that period of time may be all the time that you need to get your finances in order and regain your financial stability. Usually, the 0% interest rates on such credit card stays on for a period of 12 to 18 months. If you qualify for such credit card balance transfer, you would be able to eliminate interest, which can ultimately help you make a lot of progress in your debt repayment faster. You need to know the exact period that your 0% interest rate will be on, so that you can prepare for when it goes back up.
What other options for getting rid of debts are there?
If you are simply not able to manage to deal with all that debt all on your own, there are many different services in the loan lending industry that you can choose from. You should not forget that when you are dealing with multiple debts, there is no quick fix, no overnight solution, no 100% guaranteed method. Every financial method for dealing with multiple financial obligations has its pros and cons. We are now going to have a look at two of the most popular financial methods for paying off multiple debts.
This is a service with which you combine all your existing financial obligations into a single monthly bill with the purpose of lowering your interest rate and reducing monthly payment. Consolidating all your debts will also relieve you from some of that stress as you will no longer need to keep track of multiple different bills every single month. There are different types of debt consolidation so you need to pick the one that is best suited to meet the needs of your specific financial situation
By choosing debt management as your method for dealing with multiple bills, you would be working with a debt management company, to which you will submit your payments, afterward that company will deal with all of your creditors. The purpose of using debt management is for the debt management organization to negotiate better terms on your loans with your creditors. That means to lower your credit score and monthly payment.