Does life seems dark, and you cannot find any way out of the current financial situation? Are you in debts up until your nose? Is your lifestyle being affected by it? Is it hovering like a carrion bird over you a dying beast? Then you would find tips to pay off your debts as well as to keep yourself from drowning in depression, and anxiety.
With the increase in the prices of the consumer products, and the increasing rate of inflation, people are getting deeper into debts. There is a great variety of debts such as the credit card debt, mortgage debt, and other personal debts.
Following are some tips to help you cope with your debt problems:
* Recognise that you have a debt problem by adding up your assets, and subtracting your debts from it.
* Do not be afraid of the debt collectors, if anyone harasses you, you can fire a complaint against the debt collection company.
* Prioritise your debts; pay ones with the highest interest rates, and have some collateral like your home, or your vehicle.
* It is always good to take help of some debt counsellors, so you know the good and bad situation.
* Do not take professional help of commercial debt advisors; they will put you in more debt by ripping you off money.
* You must stop spending uselessly; especially on luxuries, as debt collectors keep an eye where your money is being spent.
Following are the tips to pay off your debt more efficiently:
* Always pay more than your minimum amount every month, this would not only reduce your debt amount, but would also reduce your interest charges.
* Another thing that can be done is to transfer your debts to your lowest interest credit card.
* If you have a life insurance on cash, then you can always borrow it. This is better than the other things, as this always have a lower return rate than the commercial rates.
* You can even apply for your home equity fund (HEL). It has two benefits; you get lower interest rate i.e. 6-7% against 18%, secondly you have tax benefits as well. The problem with this is that you also have to pay the HEL over the credit card debts.
* You can also renegotiate your debt payment terms with your creditors.
The following steps can be taken to put your worries aside for a while:
* You must have a person, a non-family person with whom you can share your financial problems without any hesitation. If the person is in the same income range, then you can relate yourself with the income of your friend and spending style.
* There is no need to spend too much on celebrating a success that you would regret later on. Rejoice in your achievements, but in a more subtle, and simple manner.
* It is very necessary to take a short nap during the day to relax a bit.
* The most important thing to do is to keep a log of all your debt payments properly, as they may be very helpful at times.
Alice Perterson is a financial expert. To take professional advice and debt management help, contact a specialist today at debt release direct.