Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.--Ogden Nash
*Every time you use credit, you incur debt. Debt can have either a positive or negative financial outcome.
*Getting out of debt requires you to do the following:
-Review Your Situation (A budget would be a good place to start). Start tracking your expenses if you have not already.
-Gain Control: do not ignore the bill collectors
-Increase income (A good place to start is reduce your expenses!)
-STOP USING CREDIT! Cut up those cards immediately.
-Sell Something. Spring is here so how about you have a garage sell and start paying off debt.
-Debt Snowball (Pay minimum payments on all cards and once one card is paid off, apply that payment to next highest interest rate card or lowest balance.) Call 205-251-1572 for more information.
-Seek Professional Assistance –Speak with a non-profit credit counselor, if necessary. No need to be embarrassed. You are not the first person nor the last to get into credit trouble. Please call 205-251-1572 or visit www.gateway.org to speak with a National Federation of Consumer Credit Counseling (NFCC) certified financial counselor who cares.
*7 Warning signs of too much debt.
-Monthly payments on debt exceed 20% of your take home income. Ex. $200 debt payment divided by $1000 take home pay equals 20%.
- You pay only the minimum due on your credit card bills each month, and sometimes you juggle payments, stalling one creditor to pay another.
-You can't save small amounts and don't have enough set aside for setbacks as a pay cut, an unexpected car repair, or an emergency visit to your parents
-Rely on cash advances to pay household bills.
-No idea how much debt you owe.
-Use credit for items you would normally pay for with cash.
-Start losing sleep and it effects your physical health.
Wed, April 25, 2012
by Karin Park