By: Q. Cuarana, MBA
Ways to Become Financial Free
As a financial advisor, I understand that high-interest debt can be a major burden, particularly for individuals with low incomes. According to one scientific research paper on the topic, having debt and not being financially free can create an undue burden of stress and anxiety on individuals and marriages. However, becoming debt-free is possible with a solid plan and some discipline. Here are some ways you can pay off your debt and become debt-free:.
#1 Way to Become Financially Free: Create a Budget
1. Create a Budget: The first step in getting out of credit card debt is to create a budget. Track your spending and determine how much money you can allocate to debt repayment each month. By sticking to a budget, you can reduce your overall spending and allocate more money towards paying off your debt.
#2 Way to Become Financially Free: Prioritize debt Repayment
2. Payoff Debt: High-interest debt, such as credit card balances, should be your top priority. By paying off this type of debt first, you can reduce the amount of interest you pay over time. If you cannot afford to make more than the minimum payments, or if the minimum payment is placing an undue burden on your family, it may be time to consider some form of debt relief.
#3 Way to Become Financially Free: Consider Debt Settlement
3. Low Cost Debt Relief: 1. If you have multiple high-interest debts, a debt relief through settlement may be a good option. In this scenario, you work with a third party agency that employs attorneys on your behalf to reduce principal balances, drop ongoing interest rates, and allows you to reduce the term of your debt by over 75% and the balance by 50-60%! Click here to see how Jackson S’s family credit card profile looked before and after beginning a debt settlement plan.
#3 Way to Become Financially Free: Consider a balance transfer credit card with a high credit score
4. Have a 720+ Fico Score? Still have good earnings but are paying 10-15% on your credit cards? A balance transfer credit card allows you to transfer high-interest debt to a card with a lower interest rate. This can help you save money on interest and pay off debt faster.
#4 Way to Become Financially Free: Consider a Debt Consolidation Loan
5. If you have multiple high-interest debts, a debt consolidation loan may be a good option. This type of loan allows you to combine multiple debts into one payment at a lower interest rate, which can save you money on interest over time. Check out this tool to compare debt consolidation terms compared to your current interest rates.
#5 Way to Become Financially Free: Stay Disciplined
5. Stay Disciplined: Paying off debt requires discipline and persistence. It’s important to stick to your budget, avoid taking on new debt, and focus on paying off your existing debt as quickly as possible. One of the key tools here is to find ways to stop spending. This means tracking your ongoing expenses and comparing them to a monthly budget. Did you hit your target? Are you on target? Are you missing targets? Document the wins and the failures and leave yourself room to improve.
Becoming debt-free is possible with a solid plan and some discipline. By creating a budget, prioritizing debt repayment, making extra payments, considering a debt consolidation loan or balance transfer credit card, finding ways to increase your income, and staying disciplined, you can pay off your debt and achieve financial freedom. Contact one of our Personal Financial Analysts today if you would like discuss your path to financial free and get a free, no obligation, credit and debt review.
Carlo V. DeFalco
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