Debt: That word strikes fear into the hearts of 77% of Americans. In fact, according to surveys by CNBC, 58% of Americans feel that finances control their lives. 52% have difficulty controlling their money-related worries. This causes many to experience fatigue, among other things as a result of stress. In this article, we’ll discuss ways to make your finances less stressful and find relief from debt.
Options for Debt Relief
A newlywed couple receives a check for 10 million dollars as a wedding gift from their wealthy parents. They use a portion of it to pay off their wedding debt and for honeymoon expenses. Then, after reviewing their finances, they decide to purchase a home in cash, pay off all their student loan debt and put 5 million into a high yielding CD (Certificate of Deposit) and use the rest for daily expenses. Now obviously, the likelihood of this happening to anyone, including myself is slim to none. Since this is an uncommon scenario, let’s look at some realistic options for debt relief.
Balance Transfer offers
If you have credit cards high balances, why not take advantage of a Balance Transfer Promotion? A Balance Transfer is the transferring of a balance from one account to another. This typically occurs with credit cards. This is a good way to consolidate credit card debt to one payment. Try to find promotional offers on your current credit card or on a new card.
For instance, you have a credit card with a balance of $8000.00 and an APR (Annual Percentage Rate) of 23.99%, you’re paying a lot of interest monthly. It can take you up to 33 years to pay that in full if you only pay the minimum balance. However, if you transfer that balance to a credit card with a promo balance transfer rate of 0%, you’ll likely save thousands of dollars in interest. The money which would be divided between interest and the principal balance is now going exclusively to the principal.
This will relieve some financial stress as you’ll be debt-free sooner. It’s important to note that balance transfer offers are not forever. They typically range from 3-18 months. So it’s imperative to pay down the balance as much as possible before you start accruing interest. Try viewing card offers here.
A consolidation loan is a closed-ended line of credit you may qualify for to bring all your debt to one central location with one easy payment. If you have 5 different credit payments monthly, you may feel overwhelmed with organizing payments and paying interest to each creditor. Consolidation loans can provide you with a low interest rate that won’t fluctuate at the end of a promo period like balance transfer offers. Every month you will know exactly what your one payment will be. This will also reflect positively on your credit report as it will show other accounts being paid in full. And the term will add a form of closed ended credit to your report which will help establish good credit over time.
Sites such as LendingTree provide thousands of creditors willing to extend you credit. It is important to note that you may not qualify for the lowest rate available. A lot of it will depend on your credit report. And you may not qualify for the amount you may need to consolidate all of your debt as this is based on your debt-to-income ratio. However, it is still a viable option to help relieve yourself from the stress of debt.
Share your Financial Goals
It can be very challenging to overcome the financial burdens of debt. However, it can be done. At times, it cannot be done alone. It’s important to have goals but also to share them. Sharing them with family or close friends may not be something you’re comfortable with, so consider a financial professional. Your bank or local credit union has products and services to help ease financial worry. There are also professionals to help you create a plan to reduce and eliminate your debt.
In many cases, you’ll find that financial professionals have been through the same financial challenges you have. This can be very comforting to know that others have been through and overcome the same thing.
Whether your plan is to share your financial goals with someone or start looking for debt-relief options, your next step should be to TAKE ACTION! Don’t read this and continue to worry about your financial burdens. The point of you reading this is to find relief from debt. Read through other stories of people who have overcome their debt and take notes and start applying it in your life. There are many more articles here to help you find relief from debt. Find more ways at CloudSwipe.