Spring is a season known for rebirth and rejuvenation. And this notion doesn’t only refer to the effect spring has on the environment. The spring season can be a perfect time of the year to get your fiscal house in order. Really, there is no bad time of the year to put your finances in […]

Really, there is no bad time of the year to put your finances in better shape. Any time you are weighted down with heavy debt, your life suffers in a number of ways. Indebtedness means the fruits of your labor and your personal property, at least in part, or obligated to another entity. Let springtime motivate you to address this situation.

Suffering from Debt Woes

One major problem with excessive debt involves the equally excessive interest rates. Once your debt balances increase and your credit score drop, additional borrowing usually involves drawing money from credit cards and other financing options notorious for their excessive interest rates. High rates of interest drain more of your funds and make paying off debt harder.

Start dealing seriously with the interest and principle. Start paying down your debt in the coming spring. Yes, that sounds easier said than done. Great effort becomes required in order to zero out balances. Things do need to be done in order to achieve financial freedom once again.

Create a Better Budget

One reason money can’t be directed to pay down debt is due to funds being spent uselessly in other areas. When your budget is under control, you can pay down what you owe. Stubbornness, however, battles inclinations towards common sense. Cutting back on a budget can be a bit painful when you are used to a certain living standard. Addressing this involves coming to the conclusion nothing drags down your living standard more than excessive debt.

Maybe the time is come to sell that relatively new car and buy a cheaper used one. Do you really need all those premium channels on your cable box? Likely, you can eat a lot cheaper by simply switching up your food purchase choices.

Steps such as these free up money. The money you save should go towards paying down your debt. Your current budget certainly isn’t helping you achieve a debt-free life. So, accept the fact it’s unsustainable and realize you must make a change.

Start Reviewing Plans to Get Out of Debt

Paying the minimum amount due on all your loans and credit card obligations hardly helps the goal of eliminating debt quickly. If you pay only the minimum amount due every month, it may take 30 years to pay things off. The thousands upon thousands of dollars in interest payments only benefit the lenders.

Better ways exist than following the “minimum payment plan” month after month.

Granted, many would like to pay their debts off. The trouble is they don’t understand what is required in order to successfully do so. Don’t struggle with trying to figure a strategy out. Instead, look into already established plans for being debt-free.

The “snowball method” steadfastly stands as a popular plan. With this method, you pay the minimum balance per month on every credit card except one. With that one card, you may pay double the minimum balance. Do so until the card is paid off. Then, move onto the next card and pay the entire amount previously paid on the first card. That means you pay the minimum on the second card plus the double payment originally made on the first card. You keep snowballing the payment on the cards until they are all paid off.

Of course, there are other repayment strategies that you could employ. Pick the one that best suits your ability to eliminate debt. If the one you selected doesn’t work well, switch to a new one. Do not abandon a plan too quickly though. You do need to give the repayment strategy enough time to work. Making a financial plan reflects only the first part of the strategy, The second half involves the all-important follow-through.

Set Up a Meeting with a Credit Counselor

You do not have to do all the work and thinking to get yourself out of debt by yourself. Sometimes, doing things on your own is not the correct path to take. Initiative alone won’t lead to results. Knowledge and experience are required in order to carefully think through a difficult debt situation. Once you reach your limit, it may be best to set a springtime appointment to discuss things with a professional.

A professional credit counselor can take a clear look at your overall situation and discuss viable options with you. Don’t expect any magic solutions from the credit counselor. The counselor will likely chart out steps to take that require some sacrifice on your part. Following the advice should help you get back on the right path to paying off your debt. Of course, you do actually have to follow the advice. Attending the counseling sessions and then not following through with what is required won’t lead to the intended outcome.

The Debt-Free Life Springs Eternal

The seasons of the year will continue to move forward. Hopefully, this spring becomes the first turning point for eliminating your debt. As your debt decreases thanks to an effective payment strategy, be sure to stay on the same course until you complete the mission. Additional borrowing or any other bad financial decisions won’t lead to turning over a new leaf. And you really don’t want to find yourself in the same position come another spring.