What is your financial philosophy? It’s always good to have some rule of thumb when dealing with debt management. In order to keep your finances on an even keel you should have some basic strategies set in place. Focus your attention on a balanced budget, low debt totals and saving for future needs. How does one do this if they have already racked up loads of credit card and short-term cash advance lenders debt?
Some financiers would suggest that you cut up all but one credit card. Others would tell you to hide all but one. Closing accounts will not help your credit score. You could always do that much later on. Spread them out over time as cancelling cards ruins a credit utilization score – especially if there is maxed credit limits. it is important to save one for emergencies. Pay off any debt on it so it is there ready to go in a crisis. It is not in the best idea to carry it around with you. It may be too tempting to use it for other expenses or risk the chance of losing it.
Don’t get caught up in the affordability of minimum payments. This amount covers the interest charges and a very miniscule portion of your principle balance. If you owe money to multiple creditors or to a cash online lender then you will want to focus on getting rid of debt fast. Work at the high interest accounts to decrease the amount of interest you pay each month. Some people would rather work at the accounts with the least amount of debt in order to obtain faster gratification. Whatever works for you; it’s your financial plan and philosophy towards money management that matters.
If you do have to find new third party money options, it is important to find the competitive rates. Understand a business’ terms and conditions before doing business with them. You will save yourself money in the long run by omitting hidden fees from your transactions.
Cash advance lenders should never charge upfront fees.
No matter who the lender or creditor is make the minimum payment each month. This is the best way an individual can protect their credit history. Some financiers would want you to make good on all debt in your name while others may suggest you let old unpaid debt alone, especially if it has been sitting around for 5 years or more. Should you settle the debt or pay in full? Well, settled debt will still be a negative on your credit. If you are going to clear all debt, make sure to pay in full so it really does make a positive impression to the credit bureaus.
Don’t celebrate right off when you debt gets paid. Use any money you had been paying towards one to pay on another. No debt? Start your savings account. The sooner you build up 3-6 months of expenses, the better position you will be to attack any type of emergency cost.
You are working on paying down debt or making things right within your finances right? Don’t be adding different debt back into the mess in the process. If you have a problem, get some help. Some people are shopaholics and enjoy the rush they get when buying something new. Others will shop just to keep up with their friends and family members. There are some who just have no idea on how to organize their finances, never mind mange bank accounts and on-time payments. Whatever your problem area is, you will want to obtain help so you don’t continue making the same mistakes. Make a plan based on your financial philosophy and stick to it.
Keep your focus on the future. You never know what will come about in the near or far future, so the more prepared you are for anything the better. Keep your assets protected with proper insurances.
If you need help, ask for it. No one is going to know how to help you if you don’t communicate. You could talk to a friend or family member for advice. Meet with a financial adviser or start communicating the companies you owe money to whether it is a creditor, online direct lender, medical debt or bank. Talk to them about your situation rather than skip payments. They will be more willing to help someone prior to the due date than after you have already missed it.