After paying several thousands of dollars on the root canals on my upper teeth, my dentist told me that they had to be pulled. He told me that the dentist that did the work didn't do it properly and that all of the teeth were infected. After I collected myself, we started discussing the cost of the extraction procedure and the cost of the dentures. I knew I couldn't pay for all of that out of my pocket and he explained the dangers of allowing dental infections to fester. I quickly learned about financing dental procedures. If you are in a similar situation, go to my site to learn about your options of financing dental work.
If there isn't enough money in the month and you find yourself wondering just where your paycheck went after your bills are paid, now is a great time to start seriously tackling your debt. Whether you're interested in freeing up some cash flow to fund a vacation or first home purchase or you just want to rid yourself of monthly payments, here are six debt relief strategies to try this month.
Audit Your Budget
Nothing you try will matter when it comes to debt reduction and elimination until you know precisely how much money you owe and what you bring in every pay period. Start off your debt reduction efforts by sitting down with recent bank statements and start getting a detailed sense of where your money goes every month. Major expenses like rent, day care, and food should all be accounted for. Once you've created your budget, find areas to cut to free up money for debt reduction. If you don't really need that subscription service, can downgrade your cable TV package, or can use coupons to slash your food bill, you can free up much needed money to pay off your bills.
Negotiate With Your Creditors
It might sound odd, but if you're having a hard time paying off your bills tell your creditors. Ask the credit card companies to close your account to new purchases and reduce your interest rates. If you've been paying overdraft fees, call and ask the bank to refund them. You may not get everything you ask for, but it's safe to say you'll never get anything until you ask for it.
Pick A Debt Reduction Strategy And Stick To It
You can pay debts off by making minimum payments on everything except for the account with the lowest balance or you can make minimum payments on all accounts except for the account with the highest interest rate. Research and industry studies show that people who target smaller balances first tend to stick with their plan, free up cash flow to tackle bigger debts, and get out of debt faster than those who pay debts down by interest rate.
Sell, Sell, Sell!
If you've got a hefty car payment or another toy that is costing an arm and a leg, sell it! If you owe more than it's worth, approach the lender and ask whether they would allow you to sell the property and sign a personal loan for the difference. Credit unions and smaller banks typically recognize that this works out for all parties involved and can make repayment faster and more likely. You could also try to pawn a diamond ring or other property to get yourself back on your feet in the short term; it's up to you if you want to get these items out of pawn again in the future or simply use this strategy as a means to liquidate old jewelry and luxury items you don't need anymore.
Consolidate
Debt consolidation can help you pay off your debts as long as you recognize that consolidation loans just shift debt to one large loan. Consolidation makes sense when you move higher interest debt to a lower interest loan. If you choose to consolidate, be sure to keep attacking the debt in the consolidation loan with a vengeance or else you may end up paying more in interest over a longer period of time.
Settle Your Debts
If you've got old, bad debt that is still within the statute of limitations, it may make sense to contact the lender and offer to settle the debt for a fraction of what is owed. They may not agree to your first offer, but it is far from unusual to see old credit card, medical, and other bills settle for 65% or less of the balance owed. It may be a stressful process, but the money saved is well worth it.
Share28 December 2017
