Debt is a burden not just because you’re slaving to pay for it, but also because the bills pay up all at the same time! Your monthly payments will not line up until you can pay one first before the other. Instead of losing your sanity trying to pay everything all at once—or worst, filing for bankruptcy because you’re finding it hard to make ends meet, it’s best to do your very own debt analysis and figure out which debt you should cross out of your list ASAP!
Before anything else, recognize the problem, and set your mind to want to clear up the debt under your name. Treat debt like you treat fire. Because for as long as you have debt, you have to put it out. Imagine that a fire breaks out in your neighborhood. Now, while you watch the flames getting bigger, you don’t rush to put out fire down the street. You help to douse the fire either nearest you or your property. The same is such when you’re in between deciding between a secure and an unsecured debt—you pay off the debt that poses a threat to your assets.
Now, let’s see which debt to pay off first
First: Check into your secured debts.
What are secured debts? A secure debt means that your property (house or car) is tied up to your loan, so that when you are unable to meet the repayment agreements, the creditors can repossess these assets as portion of payment for what you owe. Although secured debts mostly offer lower interest rates, the fact remains that they will seize your personal property the moment that you fail to pay off your debt. This also includes your house-related bills such as your mortgage and rent unless you want to get evicted from your home.
Second: What about Unsecured Debts?
The most common type of unsecured debts include credit card debts, student loans, utility bills, and medical bills. Hence, if you are having trouble with this type of debt, the best you can do is to pay for the debts with the highest interest rates. On the other hand, if you’re worried about your student loans, just make sure that you meet the minimum payment every month.
Third: Check off those Overdue Debts
It’s wise to pay off debts that have delayed or missed payments. When you pay these off, you’ll definitely be giving your credit score a boost, and repair the damage you’ve previously caused.
What to do while you are paying off these debts?
Now, of course, it’s not enough to just pay off your debts. You also have to make the necessary adjustments to make sure that your debt repayment pays off in the long run.
• Stick to your budget. Now that you’re focused on paying your debt, remember to prioritize your budget! Make it a lifestyle to follow what you’ve planned for your money.
• Save still. Even if you find this to be hard, try to set aside money while you are already creating your budget, and not after you’ve spent all your money for expenses.
• Live below your means. Avoid falling into the same trap over and over again! Don’t let debt be a cycle in your life, and don’t think that it’s normal for you to dwell in a financially-draining circumstance.
• Don’t miss anymore payments! Whether it’s your utility bills or child support—make sure debt collectors won’t have to call you anymore! A summon is the last thing you need in your goal to be debt free.
• If you get summoned… don’t ignore it! The worst thing you can do is to not take the summons seriously. Taking a summon for granted may result in default judgment and eventually—repossession and garnishments!
• Keep your eyes on the prize! Think of all the positive benefits of being debt free and financially independent.
Explore other debt relief options now!
Whether it’s bad debt or good debt, we here at Financial Rescue LLC offer an alternative solution to your financial hardships with our debt settlement programs! Rest assured that we are a reputable and trustworthy debt settlement company, so we are most dedicated in assisting you on your journey to being debt-free. To take the first step, we advise you to call 1-877-97-DEBTS for your first, free consultation. You’ll be surprised that our expert team of negotiators will try their best to settle your debt for a lower amount!
Call now and take the first step to your financial freedom!