Whether you were unemployed for a few months or budgeting has always bewildered you, you may find yourself overwhelmed with debt, but don't despair. With a little help and by learning to adapt, you can find your way out of the mire of bills and toward a comfortable retirement. Priority Plus Financial can help you gain that freedom.
They can provide you with a loan consolidation to help you reduce debt and eventually eliminate it while learning to live debt-free. Here's how.
Get a Loan Consolidation
If you own multiple credit cards at differing and often higher interest rates, you'll end up paying too much interest, forcing you to make minimum payments on each credit card. That could take years to pay off. With a consolidated loan from Priority Plus Financial, you'll have one monthly payment at a possibly lower and fixed rate. It's a smart way to pay off all those bills, so long as you don't incur more debt.
You'll have to qualify for the loan and you have to be employed full time. You'll also need a good credit rating, that three-digit number that banks and other lending institutions use to determine whether you're a safe risk for such a loan. Search online to see what your rating is. Then work on improving it by setting up automatic payments for your credit cards. Paying your bills promptly will improve your rating.
Then write down all of your expenses and compare that monthly amount with money coming in. If your debts take up 50 percent or more of your income, then you won't qualify for a loan. You'll need to find a second job to qualify for a loan.
Contact Priority Plus Financial
If you meet these qualifications, the next step is to contact Priority Plus Financial. They offer different annual percentage rates depending on your credit rating, so make sure you understand all the terms of the loan before you sign.
Once you've obtained a consolidated loan, use that money to pay off all your other debts so that you'll have one monthly payment. At this point, it's a good idea to put away all of your credit cards except for one that you'll use for online purchases. Set a limit on the amount you'll charge on that one and make it a point to pay off the entire balance each month so that your credit rating improves and you don't incur any more debt.
Create a Budget To Cut Back on Waste
Many people put off creating a budget because they see it as a form of deprivation. Instead, look at it as a spending plan, one that you stay in control of. Before creating your budget, you'll need an accurate picture of where your money goes each month. Carry a small notebook with you and write down everything you buy during that time. There are also apps available that you can install on your smartphone that will help with this.
Once you have an accurate picture of where your money is going, look at ways you can cut down on the waste. Are you stopping at that donut shop every morning? Buy a bag of bagels from the store and have one every morning instead. On weekends cook some of your favorite meals. Double up on the recipe and freeze individual-sized portions. That way, you have freezer meals ready when you're too tired to cook. By eliminating the temptation to eat fast food, you save money and improve your health.
Sell Things You Don't Need for Extra Cash
Clear out the clutter and earn some extra cash by selling those things you no longer need. An easy way to clean your home for good is by taking everything out of a closet or a room and putting items into two piles, one you plan on keeping and the other for things you either sell or give away.
Use online markets to sell them. Or you can hold a garage sale to get rid of the excess. Take the proceeds from the sale and put them in your savings account. Do this on a regular basis, and you'll always have an orderly home and money in savings.
Create an Emergency Fund
People often get into debt because they don't have an emergency fund for those unexpected costs that arise in every life. Whether it's a car repair or medical bills, make it a point to have money saved that you never touch save for an emergency. Then if you use that money for an unexpected expense, work on building your emergency fund back up as quickly as possible.
Downsize To Save Money
Many people get into financial trouble because they buy a house they can't afford. If your home mortgage takes up more than 30 percent of your take-home pay, think about renting that home out and look for a smaller house that costs less. Find a good property management company to vet prospective tenants and collect the rents for you. They'll take out a fee, but you still get enough money in rent to pay your mortgage and taxes plus extra. Use it to make double equity payments on that big home.
Practice Debt-Free Living
Once you get out of debt, you'll never want to get in over your head again, so make debt-free living a lifestyle. Think long and hard before incurring future debt and look carefully at the interest rates. Own only two credit cards, one you use for online purchases and another for brick-and-mortar buys. Be sure to pay off the balance each month so you don't pay unnecessary interest rates.
If you've incurred debt due to unemployment or a personal disaster, don't be dismayed. It is possible to reduce your debt loan by finding full-time work and improving your credit rating as well as obtaining a consolidated loan. Then develop wise spending habits so that you don't incur needless debt again. You'll love living debt-free and saving money for a prosperous life and comfortable retirement.