Reportedly, the average household in America has as much as $15,000 in credit card debt alone. Add in car payments and mortgages, and it is easy to see how many people can become slaves to their debt. What if you could eliminate most or all of your unnecessary debt? It’s possible. Here’s how.
Analyze Your Financial Situation
Take a good hard look at your financial situation. Identify all of your bills, especially those credit cards that charge you the highest interest. Next, calculate what you earn each and every month. You need to have a plan getting rid of the debt that plagues you the most, such as credit card debt. One good strategy is to pay off the credit card with the highest interest rate first, then the next, and so on.
You may want to consider consolidating some, or all, of your debt into one lower monthly payment. If you are currently paying $800 per month on your various credit cards, you may be able to combine all of those payments into one lower $500 payment, for example. You could do this with a car title loan.
If you own a car that is paid for and has a clear title, you can use it as collateral to take out a short-term loan. Title loan companies like Embassy Loans of Florida have helped thousands of customers get access to much-needed cash very quickly. Customers fill out an application, submit their documentation, and usually receive their money within an hour. Since a vehicle is used as collateral, there are no credit checks and these loans are processed much quicker.
Paying Down and Managing Debt
If you consolidate your monthly debt payments, you can use the savings to pay off another debt. If you now have a $500 monthly payment as in the above example, you can use the extra $300 to help pay off another car, a mortgage or other debt. Make sure you have a plan for paying off the car title loan as well. This way, you can be debt free before you know it.
Once you become debt free, you need to have the determination and will to stay debt free. Resist the temptation to use your credit card for purchases that you cannot afford. When you analyze your financial situation, start a budget and stick to it. This will help you to manage your finances and stay debt free.