You’ve all seen plenty of debt in your time, whether you’re struggling with credit cards, lines of credit, upside down car payments or a house that isn’t gaining any value but rather losing it, all of which comprises the constant struggle for you to save money and have financially sound futures waiting in the wings.
As debt continues to amass, saving money becomes even more difficult as one paycheck turns to another but most of your earnings is put toward those credit card and debt related bills, some worse than others.
The debt on your credit card often can’t be tied to something tangible like a car loan or home mortgage, even if you promise the creditors that you used your Visa for a new furnace. The debt that is credit card related or that can’t be dubbed as typical haunts the masses to the point that they’re looking for just about any way to pay it off as quickly as possible.
What happens, however, is you get bogged down on a budget that won’t allow you to spend more than the minimum payment and your $10,000 in debt means you’ll be paying on it for way too long and that aforementioned ends up doubling or tripling by the time you pay it off, which could take years.
So how exactly do you get this debt paid off faster?
The trick to paying it off is confronting it rather than just resigning yourself to the fact that you’ll always have it. That minimum payment being paid is a good thing and won’t hurt your credit score, but those who want to really put a dent in their debt tend to take debt on right away and look at it from a planning stage rather than a “it will be paid off when I get to it” type mentality.
Debt consolidation tends to be viewed as a negative for a number of reasons, when in actuality it can expedite the process of getting your debt paid. The downside is the monthly payment might be a little higher, but it often trains you to tighten your budget and cut your time in half when it comes to paying off debt.
Consolidating your debt can be done in a number of ways but the best tends to be working with a third party company. The move isn’t going to hurt your credit but rather is viewed by creditors as a lateral move. You may need to explain this payment when it comes to buying a house, but that can be soothed with a simple letter.
Obviously, if you can’t afford a higher payment through the debt consolidation company, it might not be quite as feasible but force yourself to look at that higher payment to get not only your credit paid off faster but reshape your budget for the better.