There is no magic pill, despite what the internet may tell you. Paying off debt is no different then losing weight in that it takes perseverance and time. In our experience, if a debt solution sounds to good to be true, then it probably is.
If you want to lose 10 or 20 pounds then a minor change in your diet or exercising a few times per week may do the trick. Similarly, If you have a manageable debt problem, which looks different for everyone, then you might be able to tackle it yourself with a few of the strategies outlined below:
- Pay High-Interest Debt First – Your monthly payment will pack the biggest punch if you direct it towards your highest interest debt first. In most cases, this is credit cards and pay day loans, however you should review your credit agreements to determine which debts have the highest interest so that you can focus on repaying them first.
- Budget – We know. It’s not fun. Nobody likes budgeting, but it can be an enlightening process to understand where your money goes, and how you might be able to direct more of it towards your debt in place of unnecessary expenses. Read more about budgeting here.
- Consider Consolidating Your Debt – A Consolidation Loan combines all of your debt at a lower interest rate, and creates a structured repayment schedule. This reduced interest rate and fixed term can be just the solution for some. The challenge is that not everyone can qualify for this type of loan.
- Cut-Up Your Credit Cards – It’s difficult to pay off debt while continuing to incur new debt. Stop the cycle, cut-up your cards, and focus on repaying your outstanding debt while living within your means. This helps to ensure that you aren’t “Treading Water“.
- Access Home Equity – At Welker and Company, we receive calls from home owners with substantial home equity every day. If debt secured by your home is less than 80% of your home’s value, then you may be able to refinance and pay off your higher interest unsecured debt and get out of debt sooner. If this applies to you then you need to contact a mortgage broker or speak to your bank.
Now, if your health is at significant risk due to your weight and you haven’t been able to get it under control on your own, then you may seek the help of a doctor or weight loss expert. Similarly, if you can’t pay off your debt on your own through the strategies described above, then it’s likely time to consult a professional like a Licensed Insolvency Trustee at Steve Welker and Company. Bankruptcy is not the only option. We’ll take the time to review your situation and consider a number of approaches to solve your debt problem, once and for all.
If you believe that you would benefit from a free consultation with one of our Licensed Insolvency Trustees then what are you waiting for? Give us a call. You’ve got nothing to lose except your debt.