To get rid of all your financial obligations this year, we encourage you to employ the following suggestions:
Prioritize your credit payments.
Have you incurred a huge credit card debt or a personal loan during the holidays, last year? If you have then, now’s the time to pay it off completely. Always remember that the longer the time it will take you to pay off your dues, the bigger the payments you will surely make on interest. And that’s not all. Your delaying tactics will only inflict damage to your credit history, which in turn, can compromise your financial prospects in the coming months.
So, instead of putting your credit payments at the bottom of your list; always make them your top priority.
Pull your credit report from the three major credit bureaus – TransUnion, Experian and Equifax.
This way, you will know how much you owe your lenders and credit card issuers. At the same time, it will be much easier for you to develop a debt repayment plan that you can use for settling your debt, gradually or in one full-swoop.
A gentle reminder though. See to it that your debt repayment plan will work well with your personal or household budget. That way, you can pay down your dues, without taking for granted your important personal and household expenses.
Transfer your balance to a low interest credit card.
If you have just received offers for zero- or low-interest balance transfer credit cards then, it would be wise to take advantage of them. Bear in mind that with such card programs, you can have a greater chance of paying off your credit obligations, without incurring huge interest charges. Moreover, a low-APR credit card can prove to be the easiest way for you to get rid of all your debts, before the current year ends.
Put a temporary hold on your credit card charges.
Always remember that continuously charging your bills, expenses, and purchases on your account, while paying down your credit card debt, can make matters worse for you. After all, you run the risk of incurring an even bigger financial obligation, which might take you several years to completely pay off.
So, while paying down your charges, it would be wise to stop using your credit card accounts, for the meantime.
Cut back on your other expenses, especially while you’re attempting to pay off your debts.
Revisit your budget plan and look for items, such as products or services, you can cut down on. Bear in mind that such step can actually free up a great deal of cash which you can use for increasing the payments you submit either to your credit card issuer or to your lenders.
Make the necessary changes in your spending habits.
Do you find it difficult to curb your spending habits? If you do then, you can always use special card programs that can help you achieve your goal. For example, you may apply for a secured or a prepaid credit card. After all, the low-spending limits or caps found in these programs will surely make you think twice before using your card account to cover a huge purchase.
Meanwhile, if you find it difficult to remember your due dates then, we advise you to use special software or personal reminders that will help remind you when a payment should be submitted to your creditors.