Is holiday debt catching up with you in 2016? Are you facing credit card bills that are way heftier than you expected? If so – and if you are ready to start aggressively paying down this debt, here are some of the effective things you can do:
- Figure out how much money you have to put towards debt – In other words, determine what your typical bills cost you and how much extra (or disposable) income you have to put towards your debt. As you do this, it can be helpful to also develop a monthly budget for yourself so that you are able to keep your spending in check as you focus on getting rid of debt.
- Prioritize your debts – Not all debts are the same. For some, the principal owed will be more, and for others, the interest rates will be higher. To prioritize your debts, figure out what debts are costing you the most (based on amount owed and interest rate), and make these your top priority for repayment. Paying of your most expensive debts first can save you money in the long run, opening up more funds to put towards other debts.
- Pay more than the minimum payment for at least one of your high-priority debts – This is what we mean by “focus” on certain debts, as the real way you are going to make any headway in paying down (and eventually paying off) debt is by paying more than the minimum payments on them. So, figure out how many of your high-priority debts you can afford to do this with, and then commit to paying a certain amount every month until the debt is gone. As long as you have budgeted right and you have a reliable income, this type of aggressive strategy can be very effective in reducing and eliminating debt.
- Avoid taking out new lines of credit and keep a close eye on what you do charge – Taking out new credit lines and/or continuing to rack up charges on your credit cards without keeping track of them will keep you in the cycle of debt. So avoid both of these things if you are serious about paying off your holiday debt.
- Stick with your plan and know when to reach out for professional debt relief help – With this type of plan in place, staying the course until you pay down and off all of your debt can be the key to getting to a debt-free state. Because, however, this process can take months or even years – and because a lot can change during that time (like the reliability of your income or the amount of your debt), knowing when it’s time to seek professional help can he pivotal to avoiding more serious problems and headaches in the future.
Contact a Denver Bankruptcy Lawyer at Garcia & Gonzales, P.C.
Are you looking for real relief from serious debt? If so, you can trust the experienced Denver bankruptcy lawyer at Garcia & Gonzales, P.C. to provide you with experienced help and honest answers about your best debt relief options.
To learn more about your best debt relief options, as well as how we can help you, contact us today by calling (303) 839-8888 or by emailing us using the drop-down contact form at the top of this page.
When you contact us, you will communicate directly with one of our attorneys, not a paralegal or legal assistant. We welcome Spanish-speaking individuals to contact us also – hablamos Español.