Anyone can effectively implement a plan and get out of debt to avoid the use of companies like us! Follow this step-by-step plan and work your way to debt-free living where you don’t need to rely on a title loan or payday loan provider. By taking control of your finances, you’re taking control of your life — and making it better than ever. There’s no easy solution, but here are a few simple tips to help you get started:
10 Steps To Debt Freedom and Effective Budget Planning
STOP spending and figure out how much you owe and who you owe it to. Gather all your credit card statements and make a list that includes the interest rates, total amounts you owe, and minimum monthly payments. List the cards by the interest rates they charge with the highest rate first and so on. A lot of people have lost track of what they owe, the bottom line is you need to make more than you spend.
Do what you can to avoid the need for payday loans and title loans – If you need them, use them wisely. We also believe that consumers should always carefully consider their options and ability to repay when they take out a payday advance or use any kind of credit. Credit Cards – Keep the two cards with the lowest rates. Cut up the others. Write to the card issuers and close the accounts and that way you can get out from under the high interest debts.
Turn to low interest credit cards instead of high interest title loan providers. If you don’t have a card with an interest rate of less than 14%, get one.
Resolve that you will use your cards only for essentials over the next six months. For other purchases, use cash or a debit card.
Add up your minimum monthly payments. Credit cards often require very low minimums but that’s because the lenders want you to keep paying the minimum monthly payments with a high APR. Let’s say you owe $2,000 to a lender with an APR that’s around 20%. If you only pay the minimum payment each month it could take upwards of 6 years to pay off that loan!
Calculate how much you can pay over the minimum. If there’s a possibility for you to pay more on each monthly payment cycle, then you need to consider it. Even paying a bit more than what’s required can lead to significant savings when all is said and done.
Apply your additional repayments to the card with the highest rate. If two cards have the same rate, put the additional money on the card with the largest balance.
Consolidate the money you owe and avoid interest payments. Finance charges are at their lowest rate in years and many creditors are ready and willing to offer consolidation loans at really low rates. By consolidating your monthly loan payments you can avoid having to pay multiple creditors while also getting one low interest rate.
Pay the minimum on your lowest rate cards until you’ve paid off the balance on the more expensive cards. By doing this you can more effectively pay off the high interest credit cards in higher amounts.
Consider using your savings to get out of debt. Sure, it sounds harsh to tap into a nest egg. But if you put together a balance sheet, your debt would cancel out your savings anyway. If they’re in the bank, you’re probably earning just over 3.2% to carry debt at 18% or more.
Budget planning is the most effective way to avoid a title loan
These are some simple steps you can take to implement and plan a budget while getting your financial house in order. Southeast Title Loans does not offer any type of budget planning services. But we recommend you always have a budget and financial plan in place before you move forward on a car title loan. Don’t worry If you don’t feel comfortable handling the budget planning on your own. There are free nonprofit and Government agencies ready and willing to help you with all your financial planning and budgeting needs.