Debt Repayment Tips for Phoenix Residents
Pay more than the minimumA good way to get out of debt in Phoenix is to pay more than the minimum. Take some time to look into your monthly budget and see how much more you can put toward paying your debts. Paying more each month will save you money on interest, helping you get out of debt faster.
Make a Debt Payoff PlanIf paying more than the minimum works for you, there are a couple of methods that you can try to assist with debt reduction. The first is called the Debt Snowball method. Through this way, you make minimum payments on all your debts except for the smallest one, which you’ll pay as much as you can. This lets you “snowball” payments toward your smallest debt. Getting the smallest debt out the way can make you feel more capable of getting out of debt in Phoenix. Once you get rid of the first debt, simply move on to the next and pretty soon you might find yourself climbing out of debt in no time. Alternatively, you can choose to follow the Debt Avalanche. Instead of focusing on the smallest balance, pay as much as you can on the highest-interest balance. The first debt will take a while to pay off, but in the long run, you stand to pay off all your debt faster and save more in interest.
Consider balance transfer or debt consolidationAnother way to help pay down your debts isn’t necessarily through paying more at a time, but rather slow the accumulation of interest. One thing to help with this is a 0% APR balance transfer credit card. Different companies will sometimes offer an introductory promo that you can take advantage of. Transfer as much of your highest-interest debt to this card so that you can stop accruing interest on this while you take care of other balances. You can do this alongside the Debt Snowball to keep your total debt down. Just make sure you start paying off the 0% APR balance before the promo ends. Alternatively, you can also consolidate your debt by getting a personal loan with a low interest rate. If you’re able to get a good deal on a personal loan, you can use the loan to pay off current debts. You’ll effectively be paying a lower interest now that the older, higher interest balances have been paid off.
Renegotiate your debtA little-known debt repayment tip in Phoenix is to simply ask your creditors what the best options are. You can call your creditors and negotiate a debt settlement—typically for far less than you owe. You can do this on your own or you can choose to get the help of a debt settlement company. Be warned though, some companies will urge you to stop making payments while negotiating the settlement, which has a negative effect on your credit score.
Re-examine your budgetThe two main ways to pay off debt faster is to either earn more or spend less. It’s not always feasible to take a second job, but adjusting your budget is much easier. Look for certain bills that you can get a better deal on like your internet plan. You might also be able to simplify and downsize certain aspects of your life like getting rid of a car or selling your home to move into a smaller one.
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