Getting Away From Debt
Getting Away From Debt
Study after study shows that a majority of Americans are in debt. To make matters worse, some research states that when faced with an emergency of $400 or more, most Americans would have to rely on debt to cover the emergency. So in short, most of us are in debt, with no savings. In order to be able to save more of our hard earned money, we first must get ourselves out of the quicksand called debt!
The first thing we suggest doing is getting a free copy of your credit report. There are many services out there but you can obtain a free copy from all three bureaus. (Experian, TransUnion, and Equifax) These reports will give you an idea of 1) who you owe; 2) what you owe; 3) the status of the account; and 4) information you can use to contact the lender. Once you have all three reports, make a list of all the debt you have including accounts in collections. Name this list “[Insert Your Name Here] Attack List”. Now that you have your list, begin to develop a plan of action.
There are a variety of methods used to get out of debt. The two most popular are the debt snowball and debt avalanche method. No matter what method you choose, the important part is that you stick to it. Watch the balance start to decrease and imagine it at zero. Remember how much this debt is costing your future and that the sooner you get rid of it, the lighter your load will be along your financial journey. Another step you may find useful is to continue doing just what you are doing now. RESEARCH!
Learn the definition of terms such as variable interest, credit utilization, debt to income ratio, and the most important term, compounding interest. Become familiar with your credit score and what things you do positively and negatively affect your score. But only do so if you are…
Done Being Broke
