How to get out of Debt in a Year
When you’re struggling to get out of debt, it can seem as if you’ll never reach your goal to live a completely debt-free life. Instead of giving up, however, it can be a good idea to come up with a plan to actually get out of debt. In fact it might be possible to get out of debt in a year.
If you’re a person with the ability to stick to a budget, then getting out of debt is possible. Start by figuring out how much you owe. If you have no idea where to begin, call a debt counselor. These financial professionals work with you to develop a budget that you can work with. These are not plans that require you to give up everything you own and cut every expense down to nothing, but trashier spending plans that take into account not only necessities but also spending categories that make life worth living.
A debt counselor can determine how much money you owe, the amount you pay in interest, and the minimum monthly payment that you have make. Using this information, he or she can put together a plan showing you how to pay off each debt, giving you a timetable of when you’ll have each account paid off.
Debt counselors also have the ability to offer you a debt consolidation loan. These loans combine all of your existing debt into a single loan. In the process, all of your existing debt is completely paid off. Instead of dealing with dozens of accounts every month, you’ll only have to deal with a single one. A debt consolidation loan will have a single payment, interest rate, and you’ll know exactly when you’ll have all of your debt paid off.
<p data-sp-element=”content”>With a debt consolidation loan, it is possible to lower your loan payment to less than half of what you’re currently paying. This is due to the fact that these loans can offer you a lower interest rate than what you’re currently paying. If you can afford to pay more each month than this amount, the extra money goes directly towards paying off the principal. With some smart budgeting and a debt consolidation loan, it’s possible to have all of your existing debt paid off just a few weeks from now, and be completely out of debt within a year or less.