SAN MATEO, Calif., Jan. 15, 2020 /PRNewswire-PRWeb/ -- Making New Year's resolutions is an annual tradition in America, with financial resolutions ranking high in popularity. Last year, 38% of people said they resolved to pay down debt, while 37% resolved to save more.
According to Freedom Debt Relief (FDR), consumers who make a simple plan, with a few definitive steps, will find that they can make a significant difference in their financial health in just a few months. To make good on a resolution to pay off debt, the company suggests starting with these steps:
1. Obtain your credit reports. If you have not done this for a while, it's a good idea to get in the habit of reviewing reports at least once a year. Each consumer can receive a free credit report once a year from each of the three main credit reporting bureaus (Equifax, Experian and TransUnion). To do so, visit annualcreditreport.com or 877-322-8228. If you find any errors – small or large – follow the directions on each bureau's website to correct.
2. Set goals. Resolving to "get out of debt" typically will not be as successful as setting goals with realistic timelines. FDR recommends making sure you have a simple household budget in place, and then reviewing it carefully to determine how much you can devote to your debt each month.
3. Think snow. If you can pay off your debt on your own, use the "avalanche" or "snowball" method to do so. Avalanche method: Pay the minimum on debts with the lowest interest rates. Use any remaining available funds to pay the highest-interest-rate debt until it is paid off. Snowball method: Pay as much as possible each month toward the debt with the smallest balance. Make minimum payments to all other debts. When the smallest debt is gone, focus on the next-smallest debt. Avoid racking up more credit card charges while repaying debt.
4. Consider a balance transfer or personal loan. For some people with many accounts at high interest rates – and who have very good credit – a low-interest, or zero-interest, card can be helpful in paying off credit card debt. Do not forget to consider fees, which usually range between 2 and 5 percent of the amount transferred. It is critical to pay off the amount transferred within the promotional period.
Personal loans can be helpful for those committed to a strict payment schedule to pay off their debt. They also can be helpful for those whose credit scores do not reflect their repayment capabilities. This is because independent lenders offering these loans can look at criteria different than what a traditional bank or credit union can as they assess how likely a borrower is to repay the loan, according to FDR.
5. Deal with the effects of a financial hardship. If your debt is related to medical expenses, loss of a job, divorce or death of a loved one, and you are struggling to make minimum payments, debt settlement could be of help. Regulated by the Federal Trade Commission, these businesses work on a consumer's behalf to lower principal balances.
Freedom Debt Relief
Co-founded by Andrew Housser and Brad Stroh, Freedom Debt Relief part of Freedom Financial Network, LLC, a family of companies providing innovative solutions that empower people to live healthier financial lives. For people struggling with debt, the custom Freedom Debt Relief program offers the chance to significantly reduce and resolve what they owe more quickly than they could on their own. For more information about the company and its services, see http://www.freedomdebtrelief.com/faq.
Headquartered in San Mateo, California, Freedom Debt Relief also operates an office in Tempe, Arizona, and employs more than 2,400. The company has been voted one of the best places to work in both the San Francisco Bay area and the Phoenix area for several years.
Contact: Michael Micheletti, [email protected] or 415-359-6985.
(end)
SOURCE Freedom Debt Relief
Share this article