When your financial situation looks so bleak that you're considering bankruptcy, talk to ReallyGreatRate. You can find out, in a free consultation, whether there's a Debt Relief Program right for you. You might be surprised to learn that there's more than one option available. ReallyGreatRate can advise you on the best option for your specific financial situation. Just having that information can be the first step in rebuilding a brighter financial future for you and your family.
But if you're not quite in circumstances that dire yet, and you want to try pulling yourself up out of those dark financial waters yourself, we wish you the best. Here are a few tips to help you out:
Decide that you're going to spend less than you make. Realize that if you can't pay for it today, you can't afford it. A tough habit to get into, but you can do it!
Pick a card, and not just any card! Which, of all your credit cards, has the lowest annual interest rate? Keep only that one. Or at least decide you'll use the others for true emergencies only.
Distinguish between Good Debt and Bad Debt. Many financial experts say that “good debt” –the type it's okay for you to be carrying – has an interest rate well under 10%. And by the way, is whatever you bought with borrowed funds appreciating in value?
Home mortgages and student loans are good debt. But that 30% loan from wherever? Fuggetaboutit!
Get together your latest bills. Your latest bills from all those bad debt accounts, that is. Find the minimum monthly payment for each. Add those up to get an overall monthly minimum. Decide you'll pay that amount. Now, pay that PLUS an additional amount each month. That's right: pay enough extra to start paying down the outstanding balance of at least one of those accounts. Then, line up your latest bills according to the annual interest rate charged and pay the additional monthly charge (over the minimum) for the highest rate account.
If you keep repeating this process, the final bad debt account WILL eventually be paid off completely.
Ask for a lower interest rate. Any account charging you more than 14% interest? Tell the company you'd like to stay with them. But tell them that you have received offers for much lower-rate cards. You will start seeing some positive results.
REMEMBER! While you're doing all these positive things with regard to your “bad debt” rates, don't forget to make minimum payments on your mortgage, automobile, or any other secured credit account. (In practical terms, secured basically means that if you miss enough payments, the bank can take your stuff away.)
When you're done paying off that bad debt . . . keep the good practices going, and start saving.
As hopeless as your situation might seem at times, remember that there is always the assistance a service like ReallyGreatRate can provide. It starts with a free consultation. That's where you'll learn that things are never really that bad.