Any time is a good time to think about paying off debt. Be it the holidays, the new year, or your birthday – now is a fantastic time to free yourself of the confines of high-interest credit card debt. It’s pretty likely that we’ve all been leaning a bit on those open lines of credit to make ends meet during these chokingly bad economic times, but racking up those interest charges will only hurt you in the long run. Here are some suggestions of what to do and what not to do in order to pay off some of those accounts.
The first thing you should do is make a plan. Figure out how many credit cards you actually have, and how much you owe on each. You’d be surprised at how many people don’t keep track of which cards they have, what the interest rate is on each, and how much they owe on each one. Once you do this, you can identify which cards have the lowest interest rates and which ones you owe the most on.
Speaking of that low-interest card – if you’ve got some room on that account, it might be a good idea to transfer the balances of higher-interest cards on over. A lot of credit card companies offer very reasonable deals on balance transfers.A word of caution: make sure you read the fine print. Make sure it really is a good deal, and pay close attention to how long the deal will last. You don’t want to transfer big balances over to a lower-interest card only to have the interest rate rise. Then you’re stuck in the same boat you were in before! Also keep in mind that you never know until you try – call your credit card companies to ask for a lower interest rate. The worst they can say is no, and if they say yes it will make it that much easier to pay down your debt.
Even if you’re not able to transfer any balances, one key to paying off credit card debt is to pay more than the minimum due. When you think about it, paying the minimum payment is sort of like throwing money at the credit card companies. The less you pay every month, the more they can charge interest on.
That’s taking money away from you and putting it directly into their pocket. The best thing to do is pay off as much as you can every month. Just an extra $10 or $15 on each payment can make a difference, but you’ll see an even bigger difference if you can pay double or even triple your minimum payment every month.
Easier said than done, right? Sometimes the only payment you CAN make is the minimum payment. To pay more, you have to think about bringing in some more money.That’s also easier said than done, of course. A lot of experts will recommend that you borrow money – either from your 401K, from your life insurance policy, or even from family members – in order to pay off your credit card debt.Unless you’re in over $10,000 of credit card debt, that’s not a good idea.Why go into more debt trying to satisfy debt you already have? Under $10,000 is a manageable amount that you should be able to pay off in a year or so provided you get your interest rates down and you pay more than the minimum payment every month.
So, the million dollar question is, how do you start bringing in a little bit more money to help you pay off your credit card debt? You could take on a part time job – which is a big commitment and you might not have time to do it. One idea is to gather up some of your old gold, old silver, old silverware, and old jewelry to sell to one of those online places.That’s a one-shot deal and with the current high price of gold, you might be surprised at the amount of money you’ll get.
Whatever plan you choose, remember that paying off credit cards should be at the top of your top financial goals.Once you get out from under those interest rates you’ll be surprised at how free you’ll feel.
Filed under Uncategorized by on Feb 23rd, 2010. Comment. 
College graduates are in need of debt relief
It’s no secret that young people are in need of debt relief the minute they come out of college. These days, college students are targets for credit lending companies, and normally the average college graduate has at least one card and $ 3,000 of debt. The only way to handle it, is to find a good job right away. Here are some tips for consumers in their 20s as they look for a job:
- Every young person should buy a new suit and shoes for interviews. Today’s market is competitive, and good grooming can set you apart from other applicants. A good suit is always a wise investment.
- You shouldn’t pay a dime for “resume kits” or services. There are numerous resources online for free.
- Use Alumni chapters as networking tools. If a graduate’s alumni association has a nearby chapter, they can visit and ask for help with job placement.
Getting a good look, and having the right connections will make things easier.
Handle the new jobs
Once a graduate finds the perfect job, the next thing to tackle is to learn to manage finances from the start. Here’s three tips on handling a new job.
- As a new worker, people can be overzealous with spending. Because it’s probably the biggest paycheck they’ve seen in their careers, many new hires go on spending binges. That’s a bad idea. First of all, though the numbers are bigger, so are the taxes taken out. It may help some people to go online and us a tax estimator to see how much is really ‘take home’ pay.
- As salaries and investments increase in breadth and depth, so do tax returns. Debt relief will play a big part in the first few years of a career. They need to learn how to use tex breaks and deductions to their advantage, so they can put that extra cash into paying off debt.
Careers are assets that need to be managed. Young people have to understand they’re investing in themselves, and make careful decisions about what course they want their careers to take.
Getting hired is great, but managing a career is very important. Making the right decisions early on will put a person in a far better position once they get to middle age.
Where to live
Another big decision for graduates is where they are going to live. Studies indicate over 30 percent of recent graduates move back in with their parents. This is a good idea, but there are ways to manage if it isn’t possible.
- Young people should have a bank account, first and foremost. Some landlords require security deposits and first month’s rent in the form of a certified check.
- Consumers should take care to put money aside for rent and expenses first.
- Roommates can help defray the costs of renting, but it should be looked at as a business transaction. Make sure there is a written agreement outlining all requirements and responsibilities prior to them moving in.
- Finally, young people could consider subletting an apartment for a short period of time to get themselves used to paying monthly bills and understanding the amount of money they will need to sustain themselves.
Filed under Uncategorized by on Feb 6th, 2010. Comment.
