personalfinanceninja.com

Debt

A Guide to Clearing Debt FAST

May 19, 2014 by Archie Archer in Debt with 0 Comments

If you’ve got debt hanging over your head, then you’ll no doubt want to clear it as fast as possible. However, it can be difficult to know what to do first, and how exactly to go about it in a way that will clear it all as quickly as you possibly can with little stress. This post will help you if you want to clear your debt FAST…it’ll take commitment and determination, but it can be done!

5474155241_4918b47ea6_z

Image Source: Flickr

Change to a 0% Balance Transfer Credit Card

The average credit rate has reached more than 18%, so if you’re paying interest on your credit card, it could be beneficial to switch your balance to a 0% transfer deal. Some deals out there offer 28 months interest free!

Reject Any Increases in Your Credit Card APR

If you owe money on a credit card and the company contacts you to say they’re going to push up your interest rate, you can reject the increase within 60 days. This means that you won’t be able to spend any more on it, but you can pay whatever you owe at the previous lower rate.

Avoid Payday Loans

Payday loans are very expensive, and can make many payment requests if a transaction is not verified. This could mean getting into trouble with your card provider if you’re not careful – only ever use a payday loan as a short term resort.

Improve Your Credit Score

Always check your credit score before applying for credit. If there are mistakes on your file, this can affect your chances of acceptance when you apply for something large, like a loan. The interest rates you’re offered can also be affected. You can check your credit score twice a year for free, so check it out and improve it by paying off any existing debts or clearing up any misunderstandings.

Pay More than the Minimum

Instead of paying the minimum off on a credit card, pay off as much as you can afford. Otherwise, you might spend years trying to pay off the full balance and you could damage your credit score in the process.

Pay off Debt Before Saving

It’s great to have some money to fall back on in case of an emergency, but you shouldn’t save if you owe money. It makes no sense! Pay off any debt you have before saving money so you can avoid high interest charges and getting yourself into more trouble.

Consider Debt Consolidation and Advice Services

If you’re truly at a loss when it comes to what you should do or you feel trapped, you should consider debt consolidation and advice services. You can get an IVA agreement so you can avoid going bankrupt and become debt free in around 5 years. Check out Johnson Geddes for IVA and debt solutions in Cheadle and Stockport.

Snowball Your Debt

If you have lots of debts, then they will all be due to clear at different times. Instead of spending the money you save as each debt clears, put that money towards the next debt. Continue to do this as each debt clears, and you’ll clear your debts faster than you could have ever imagined!

Now you can get your debt cleared and finally feel free in record time. Good luck!

Leave a reply