The average American debt statistics for 2021 are quite alarming. More than 80% of Americans have consumer debt, with mortgage debt being the top concern in the country – owing over $9.44 trillion collectively. Having said that, debts aren’t necessarily devastating. Until you manage your money in a disciplined way and make repayments on time, debts do not become financial woes.
Unfortunately, most people do not plan wisely before applying for a debt. As such, they end up struggling to manage piles of debts that continue to add year on year. Tradebloc Tim Clark, an industry expert in credit and debt management, shares valuable tips to manage your debts like a pro. He has 25+ years of experience in the debt management and credit repair industry, offering tailored and proven solutions to help get rid of debt struggles. 1. Do Not Miss Payments: Defaulting by just one payment can turn good credit into bad credit. To manage your debts efficiently and prevent bulk overdue amounts from getting reflected on your credit report, it is important to pay your EMIs timely every month. If in a certain scenario, you are unable to pay the repayment amount, make sure to pay at least the minimum amount due. Timely repayments will not only enable you to be debt-free in no time but also help establish your creditworthiness and improve your credit score. 2. Prioritize and Manage Your Debts: When you have multiple lines of credit, it is crucial to optimize and manage your debts efficiently, suggests Tradebloc Tim Clark. Make a complete list of all the debts, total outstanding balance, EMI of each, rate of interest and tenure of repayment. This will give you a complete picture of how much you owe to creditors each month. Likewise, you can manage your monthly budget and ensure you never miss a payment. 3. Learn Effective Money Management: It isn’t just your debt repayment amounts; a significant portion of your income also goes to running errands and other necessities. When you spend lavishly on non-essential things, you will end up missing your EMIs or paying for an important item. Therefore, it is crucial to plan your budget based on your income and expenses. Additionally, you should focus on spending only what you can afford. Most essentially, you should save a certain amount of money each month. 4. Consolidate Your Debt: If significant financial crunch situations are making it hard to repay your debts, then consolidation can be a good solution. It allows you to consolidate two or more debts to have a single repayment amount, with better interest rates and easier terms & conditions. Managing a single debt amount is often easier than repaying multiple credit lines. However, debt consolidation requires excellent negotiation skills because you need to persuade the creditors for the same and get better terms of repayment than what you have been paying for. Therefore, it is important to partner with a debt management specialist like Tradebloc Tim Clark. He has vast industry knowledge and exceptional negotiation skills, helping clients consolidate their debts, improve credit scores, and manage their money better.
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