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Ditch Your Debt Before the End of the Year with FreedomPlus


Alwihda Info | Par Info Alwihda - 20 Septembre 2017


Ditch Your Debt Before the End of the Year with FreedomPlus
It's almost October, which means that the end of the year is steadily approaching. If one of your goals for 2018 is to begin to dig your way out of debt, FreedomPlus is here to help. We've assembled some of the top tips from financial experts across the United States to help you make positive changes that will point you toward a healthier financial future. Consider making a dent in your debt before the end of the year by trying some of these strategies!

Know your debt

Before you can create a plan to tackle your debt, you'll need to figure out exactly how much you owe on each of your outstanding accounts. Sit down with a cup of coffee, open up Excel, Google Sheets, or another data organizational tool, and write out the current balance of each of your accounts, the interest rate on each, and which accounts are associated with which creditors. Getting a solid grasp of how much you owe and a prediction of how much interest you will accrue on each account is the best way to organize your payments so you end up paying the lowest final amount possible.

Figure out how you got into debt

No one intentionally finds themselves in debt, but locating and understanding what caused you to build up debt is crucial to making changes to avoid falling back into the same cycle. If you've intentionally went into debt (for example, to cover you student loans for college), FreedomPlus recommends reviewing your options and speaking to your creditor if you are unable to make your monthly payments- you may be able to negotiate a deferred or income-driven repayment plan. For those who have gone into debt due to a sudden unexpected expenditure (for example, and emergency car repair or medical bill), building an emergency fund should be on the top of your list of priorities. And finally, for those who have built up too much credit card debt, leaving the home with only one card and cash can curb the temptation to spend money that you don't have.

Build a (reasonable) budget

If you want to start making real progress on your debts, you'll need to create a household budget that allocates money for debt payments. This may require cutting out a few luxuries or picking up a side hustle like driving for Uber or freelancing in your free time to make sure you have enough money to pay for your usual expenses as well as your debt payments. Apps like Mint can help you create a budget that is both reasonable and also helps you make progress on your debts.

FreedomPlus recommends making only the minimum payments on the majority of your accounts to help avoid late payments and damage to your credit score, while also avoiding the accumulation of more interest. Then, focus your efforts towards paying down the accounts with the highest interest rates first.

Consider debt payments a required expenditure

Do you have a tendency to save after spending instead of spending after you've put away money to save? FreedomPlus recommends signing up for automatic payments on your accounts so you avoid the temptation to skip a payment. These services will subtract money from your savings or checking accounts on a specified date every month, which can help you to start consider debt payments as essential as other payments like your mortgage or car insurance bills.
Working your way out of debt can be a challenge-but it isn't impossible! If you need help building a budget or learning more strategies and tips to reduce your debt, FreedomPlus may be able to help. The keys to lowering your debt are living within your means, sticking to your budget, and making regular payments- if you can start with these three tricks, you'll be well on your way to a healthier financial future!


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