ComparaSave.com Provides Six Tips to Get Out of Debt Faster
Toronto, ON (PRWEB) July 30, 2013 -- Holding too much debt can negatively impact credit reports and create many potential issues for the future; therefore paying down debt should always be a top priority. While this is easily agreed upon, actually doing so is the difficult part. Taken one step at a time though, paying off debt actually feels really good. For people looking to see debt dramatically decrease, try these 6 tips from ComparaSave.com to get out of debt quickly.
Pay Bills Often
Sure in most instances bills are only due once a month, but by paying off bills more often than they are due will diminish debt more rapidly. Plus, by paying more frequently people are able to make smaller payments and hardly notice money leaving a bank account. Try setting up a program like Auto Pay to pay bills at regular scheduled intervals, either once a week or every other day, the exact details are up to each person; set the reoccurring payments for a dollar amount you can easily afford, even $5 or $10 deposited regularly adds up. Pair this new routine to what is normally paid each month and the practically unnoticed efforts will really start to pay off.
Combine Debts & Avoid Interest Rates
Having 10 different credit cards gets complicated, especially when only paying the minimum payments every month. This is how people get trapped in debt for eternity; minimum payments are mostly just interest, leaving nearly the same balance each month. In other words it could literally take 20 years to pay off a $1,500 debt, which any bank desires since that’s how they make a good deal of money. By combining your debts (namely credit cards) wherever possible, it is easier to pay off larger balances at one time, and perhaps even avoid high interest charges. Assess which cards have the highest interest rates applied; these are the cards to transfer balances off first, perhaps swap the balance onto low interest credit cards - many offer 0% interest for the first year.
Still Spending?
While struggling to get out of debt, it’s not uncommon that we are only making more of it. In order to get rid of debt, stop creating it. Shredding credit cards is one way to avoid the beloved plastic, creating strict budgets is yet another. Even if using every trick on the list to get rid of debt, people may still be in debt if spending habits don't change.
Use Rewards For Motivation
No matter how old we get, we still remain more likely to successfully accomplish a task if we know a reward follows. In that case, tell yourself that once debts are paid off (not including your mortgage), the desired thing can be purchased. Once there are no credit cards to pay off you will find extra money swimming around in the bank anyway, making for the perfect excuse to buy something deserved.
Don’t Need It? Sell It!
Anything that is cluttering up the home, and likely old credit card statements, is an item that can be turned into cash. This cash can then be used to pay off debts while the house gets cleaned of excess clutter. Online platforms allow people to easily connect and sell their goods, while garage sales and that friend-of-a-friend looking for the saw gathering dust in the garage, are other options.
Write Down Every Purchase
Debt often occurs because we spend more money than we bring in; if only able to purchase the basics but still high debt, it’s time to start recording spending habits - each and every purchase. When looking back over monthly purchases, all neat and orderly, it becomes clear where money is senselessly wasted, or could perhaps be saved. By getting spending in check it is only ensuring that debts will soon be paid off.
About ComparaSave.com
ComparaSave.com is a digital marketplace dedicated to helping Canadians save money by providing the lowest insurance and mortgage rates, as well as credit card and holiday comparisons, from a network of over 40 providers. Launched by Insurance Hotline, ComparaSave.com has partnered with insurance companies and brokers, mortgage professionals, credit unions and other financial institutions to ensure consumers get a fast, free and easy-to-use service. ComparaSave.com is a division of Insurance Hotline.
Cathy-Anne O'Brien, BlueSky Communications, 416.929.2506, [email protected]
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