Credit card debt is something that has caused people issues for decades. They feel like they are on a never-ending treadmill of owing money. It is something that can affect their ability to buy things like a car or a home. They want to get off this treadmill .. but how?
Before they look up something Symple Lending on a website, there are other things that they can do. Some of these things might seem to be common sense, but debt can make people not think too clearly.
Pay Off The Smallest Debt First
This is something known as a debt snowball. If you take a small snowball and roll it down a hill, it grows larger as it makes its way down the hill. Your small “snowball” of paying off the small debt could then grow larger as you decide to continue making payments for larger debts.
Once you have paid off the smaller debt – perhaps a lower limit credit card, refrain from using it until all the debts have been paid. Then create a plan to keep yourself from falling into the same credit card trap.
Pay Off The Larger Debt First
This is taking the opposite approach … some call it the debt landslide. You tackle the debt with the highest amount owed or the highest interest rates. Once you have rid yourself of those, you can “avalanche” and cover the smaller debts. The best thing about this avalanche is that you won’t need any rescue dogs to look for you when you finish.
In order to do that, you need to sit down and look at the things that you pay for now. Could you pay the minimum on some things and funnel the extra money toward the larger debt? If you can, you should seriously consider doing that.
Pay More Than The Minimum Balance
It can feel tempting to just pay the minimum amount that you owe, but if you do, it can keep you on that debt treadmill. The interest rate will keep you from making any real progress. Pay a little extra and watch yourself make good progress. This goes for things like a mortgage, too. You could put a little extra per month and whittle that 30-year mortgage down a few years. That would give you more time to enjoy your property free and clear.
There are other things you can do, like using a lending company. But that can also depend on your creditworthiness. Once you have built up the credit, you might be able to get the loan and further pull yourself out of your hole.
It took time to get into debt and it will take time to get out. Just be smart and follow these points and you will eventually be back on top.