Being financially intelligent is the best way to guarantee the best and lowest rates on mortgages, auto loans, and personal loans. However, millions of united states of an American citizen who are burdened by credit card and other forms of loans are not financially savvy, thus, managing their finances is a huge burden. These set of Americans continue to acquire more debt and lack the capacity to effectively and efficiently manage this debt, thus, continue the circle of poverty.
Unfortunately, self-denial of ones capability to deal with the debt issue in one’s life will not miraculously lead to financial freedom. A debtor needs to confront his/her reality and tackle the issue head-on. Here are five hot tips to help you tame your debt from escalating.
GET RID OF THOSE CARDS
Although, it might seem fashionable and impressive to flaunt the myriads of a credit card in your wallet. The reality, however, is that you need to get rid of some of those cards in other to better manage your debt from escalating. Come to think of it those cards are the reason why you are in debt in the first place hence financial expert and advisor always advise individual, small business owner and organization wanting to manage their debt profile to limit the number of credit cards in their possessions.
GET FINANCIAL ADVICE IMMEDIATELY
The value of financial education and advice cannot be overemphasized. One thing is for a debtor to realize his or her financial status, another thing is to consciously make effort to stem the tide. One sure action step to take in your attempt to stop the slippery slope into further indebtedness is to get financial advice immediately. There are many reputable individual and organizations offering Debt management advice in America today than say ten years ago. Carry out your due diligence on the debt management company before engaging one. You can never go down with a good financial counselor behind you.
PLAN YOUR WAY OUT OF DEBT
Without sounding like a broken record “He who fails to plan plan to fail” it will be unwise to continue to live without a financial plan and still expect your mounting debt to subside. Get a good financial advisor to help draw a debt exit program and plan of action specifically tailored to suit your financial status. Ensure you execute the plan tenaciously and you will in nothing stop further decline into indebtedness and thus regain financial freedom.
EXPLORE THE OPTION OF MORTGAGE REFINANCING
Apart from other advantages mortgage refinancing or home equity loan has for homeowners, mortgage refinancing or home equity loan provide you with the ability to use such loans to pay off all or most of your credit card loans thus consolidating these loans into a single home equity loan. By using a Home equity loan to offset your credit card loans you also improve your credit score thus creating opportunity for debt relief and eventually stopping your debt from escalating.
CONSULT WITH DEBT MANAGEMENT COMPANY
Debt management companies are organizations purposely licensed to advise individual, small business owners, corporation and organizations on how to manage their debt profile. Using the service of a debt management company to stem the tide of mounting debt is what I consider good thinking. Check out the profile of the company and look out for any infraction against the company so that you will not fall deeper into debt but rather be happy eventually.
In summary, if you get rid of some of the credit cards in your possession, get financial advice from a competent financial advisor, follow the prepared plan of exit from debt gotten from the advisor, take advantage of home equity loan to consolidate your credit card debt and use the services of a debt management company once you realize your financial status then you will be stemming the decline into further debt