1. Know the facts - Assemble all of your credit cards, loans and financial information, however, that you can study each one carefully. Many people never really confused look at their credit card statements and eventually pay dearly, as a result.
The sheet of paper, or on a simple spreadsheet created on the computer, record monthly payments each of your debts, along with the total amount, interest rates and key terms of each loan, such as a limit or late fees. Now the list of your total monthly income along with a summary of your evaluation or other recurring costs.
2. Check the numbers - Now is the time to calculate how much you actually spend each month to pay for each of your debts. Also determine exactly how much you want to pay in interest payments and taxes, and. Decide which of your debts takes precedence over others, as a rule, credit cards and small loans should be paid to student loans or loans that homes are much lower interest rates.
Debts with a high annual fee and interest payments must always be taken care of first, along with those close to paid in full.
3. Consider your options - After examining your exact position with credit cards and small loans, analyze your major debts such as mortgages and car payments. If possible, consider refinancing your mortgage, including some of your smaller debts in your new monthly payment. Some people may also find it advantageous to cash some of their home equity in order to repay high interest loans or to eliminate credit card debt.
Many lenders will work with consumers who are making a real effort to pay their bills and improve its financial prospects. Call your credit card company and try to negotiate lower interest rates or even transfer balances at stake with lower rates and fees.
If you have a considerable amount of credit card debt in some cases, it is advisable to obtain a bank loan, which will have significantly lower interest rates, and more than likely, more lenient payment schedule as well.
4. Be Course - Consider signing up for automatic payments through your bank to stay on schedule, but be sure to remember, when funds will be deducted to avoid hefty overdraft charges. Continue to monitor your credit evaluation and consider enrolling in online credit monitoring regularly receive reports on your credit history, as well as useful e-mail alerts.
After all your hard work, it is very important to stay on your main goal; reduce payment and credit card debt. It is very important to follow the budget that you or a debt counselor developed on the basis of your monthly income and expenses. Create a calendar with dates and amounts of all their debts are clearly marked.