If you are struggling to pay off all your separate credit and store cards, it may be a good idea to consolidate them all into one debt. You will then only need to make one payment per month. Having all your debt together in just one loan means that your monthly payment will then become lower. This can lift a huge weight off your shoulders and gain you back some control. Secured debt consolidation loans mean that the amount you borrow is secured against your assets – usually your house – so you do have to make sure you can meet the monthly repayment else your home may be at risk. Use debt consolidation if it will lower the interest you are paying each month and if it will help you get back on track with your money.
Contact a Credit Counselor
If you are too scared to talk to your family about your money troubles, you may want to talk to a credit counselor instead. This service is either free or low-cost. A credit counselor will go through all your financial issues with you. They will help you to create a budget and teach you about better money management skills. When contacting a credit counselor make sure that they are accredited with either the NFCC or the FCAA.
Prioritize Your Bills
Do you just feel like you cannot control your money very well? You may not need debt consolidation or a credit counselor, but you may still feel like things are spiraling. It may be that on top of your household bills, you then spend lots on clothes or dinners out. Alternatively, perhaps you don’t have a contingency fund for things that go wrong with the house and car. Therefore, when you have had to pay for these things, your debt has started to rise. If you do not keep on top of things, even just one extra big bill or expenditure can spark a series of events that cause money troubles. Learn how to prioritize your expenses and take a ruthless look at what you can cut back on. Priorities include mortgage/rent, household bills, groceries, credit card bills and income tax. Cutbacks can be found in cable services, telephone bills, takeout’s, movies and dinners out. Even if it is just for a while as you start getting back on your feet. Always pay the minimum on your credit cards and try for more if you can. Work towards paying off one whole debt first by using as much of your income as you can, and then get working on the other debts. Move through your debts by prioritizing them in order of highest interest rates.
Eventually, with some hard work and effort, you will be saying hello to a debt-free life again!