Steps to creating an effective debt elimination plan

Category: Debt Settlement

Have your credit card payments gotten out of control? Are bills piling up, and causing you to fall deeper and deeper in debt? If you’re struggling with debt repayment and find that you’re barely making much process, the following are some tips for lessening or eliminating debt once and for all:

Create a plan

Sit down and list all of the debts that you owe, including any pertinent details, such as interest rate, minimum payment amount, overall balance, and due date. This can give you a better indication of just how much you owe overall, what amounts you need to pay every month, and when you need to pay your bills. Next, you want to begin focusing on a specific strategy for tackling that debt, and putting that plan into action. For instance, you might want to start paying off the account with the highest interest rate first, or you may want to begin by paying off the account with the smallest balance.

Transfer balances

If you’re dealing with a lot of different payments, or you have credit cards with high interest rates, you may want to consider applying for a new credit card with a low interest rate and transferring your balances. If you qualify for a credit card with a better rate, this can allow you to pay off your debt faster because you’ll be paying less in interest. You may even be eligible for a credit card with a zero percent introductory offer. However, you’ll want to be sure that you pay off your debt before the introductory period is up, because many credit cards with great introductory offers will have very high interest rates once that period is over.

Pay more than the minimum payment

Minimum payments will keep you from defaulting, but won’t do much if you’re trying to make a serious dent in your debt. Because minimum payments mostly go towards interest, rather than the principal, it can take a very long time to pay down debt by only making minimum payments. The more you can pay beyond the minimum requirement, the better.

Make timely payments

It’s imperative to ensure that you pay your credit card payments on time each month. Missing payments can result in serious consequences, including a drop in credit score and possibly defaulting. Terms and conditions will vary by credit card program and loan, but even by missing your payment deadline by a few days, your interest rate could possibly increase and you may need to pay penalty fees. If you’re working on eliminating your debt, penalty fees and increased interest rates will just set you back even more.

Contact Peachtree Financial Solutions

If you’re receiving payments from an annuity or structured settlement, you may have the money you need to pay down your debt, but it’s currently tied up in a long-term payment stream. Why not sell some or all of your future payments and receive your money sooner, and in one lump sum payment? Peachtree Financial Solutions can help get you the money you need to pay down your debt by purchasing all or a portion of your future payments. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash.

 

Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.

Tags: balance transfers, debt, debt elimination

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