I’m currently in week one of a nine week Money Mastery class and one thing that has popped up is our beliefs regarding debt. Debt is something most people will have to deal with at one point in their lives. There are different types of debt, both good and bad. Good debt such as a mortgage or student loans is seen more as an investment for the future whereas bad debt such as credit cards is money spent on unnecessary things.
Whichever type of debt you have it can be stressful trying to save money to clear it. Here are the top five tips on finally tackling your debts.
Assess Your Financial Situation
In our Money Mastery class so far, we have been assigned the task of tracking our daily spending to assess our financial situation and where our money is going.
This is important because by doing so you can find a suitable solution to your debt problems. Aside from this it is ideal to draw up a budget of your incomings and outgoings and make a realistic report of your spending. If you are saving money for anything in particular, include this in your budget.
It’s also important to check out your credit score every few months to ensure your financial information is accurate. You can request a free credit report online. This will also come in handy if you have a plan on working with a professional financial advisor.
Prioritize Your Debts
The next tip is to find out how to prioritize your debts. Your mortgage and bills should be priority debts. Deal with these first as they are necessary to keep a roof over your head. If your credit card score is too high then this could affect your credit report. This means you will have fewer opportunities when it comes to housing, utilities, and other financial products. Prioritize clearing this debt as well.
Find Out What You’re Entitled To
Yes, knowing your benefits is also very important, so be sure to do your research to find out more about benefits. You might also be entitled to a reduction in your bills or taxes depending on your financial situation. For example, working families are often given support or tax credits, so find out if you’re entitled to any government aid or welfare. Make sure you are getting all the help with your finances as possible.
Budgeting Services
If you’re having difficulties sticking to a realistic budget then budgeting apps can help you. You could also get a managed account or budgeting services from your bank. Get all the assistance you need to help you control your spending and save more money to clear your debts. Remember when I used a phone app to save for our Dimes to Disney trip. Advances in financial technology now mean it’s much easier to control all your accounts from the same device or smartphone.
Expert Advice
Finally, It’s always a good idea to get expert advice on different debt management solutions. Getting expert advice means finding a more relevant solution to your unique situation.
Learn more at www.DTSS.us about the most suitable methods for you to clear your debt.
