If you’re struggling with too much debt you’re not alone. It seems as if the whole nation has a borrowing hangover. For years, credit was easy and many people became overextended. But we now live in an era of austerity and it’s time to get our affairs in order.
The 5 strategies you may want to avoid:
The first advice of experts in the field is to be sure you don't make your situation worse by making common mistakes. In particular try to avoid:
- Paying only the minimum payment on your debt as this will results in the amount you owe actually growing and your problems will only become worse.
- Relying on friends and family as this can damage relationships with the most important people in your life.
- Unscrupulous credit counselors/ debt settlement companies that demand cash upfront or high fees for help they promise, but don't deliver.
- Using new high-interest loan to pay off lower interest rate loans – while it may be easier to just have one payment but it will actually increase the amount you have to pay back.
- Declaring bankruptcy – this can have permanent and severe consequences on your financial future, avoid if you can, especially when there may be alternative options to assist….
The 1 strategy you may want to consider:
Surprisingly, making changes to how you allocate your interest payments every month can have a huge impact on how long you are in debt. So, a new category of online “do-it-yourself” debt payoff solutions is arising to help borrowers save thousands of dollars by getting out of debt years sooner.
The leader in this category appears to be DebtGoal - which has developed a self-help tool for people looking to get their debt under control. It’s a software program that acts like a personal finance coach to help people pay down their debt faster by paying smarter.
Research has shown that getting out of debt is primarily a result of having a definitive plan. DebtGoal lets you create a plan that fits your budget and financial goals. Your plan tells you exactly what to pay on each debt account each month
The DebtGoal program also helps you plan your payments efficiently so you are paying the right amounts to the right accounts to minimize your interest and maximize your principle payments. Because of the compounding effect of interest, this can translate to literally tens of thousands of dollars in savings.
Keeping track of multiple debt accounts and payment accounts can also be difficult. So DebtGoal’s SmartPay Plan™ does this work for you. It lets you know exactly where you stand each month and keep track of your “debt-free date”. You can also see how small changes to your plan affect how long you’ll be in debt.
In addition, there is a large and growing network of people using the program and sharing valuable tips that new users find hugely valuable; like which creditors are most the flexible with payment plans and what to avoid. Being part of this network can help keep you motivated and on track to eliminate all of your debt once and for all.
Most importantly, using a program like DebtGoal is much cheaper than expensive debt settlement agencies. You can try the software free for a week before you decide if you want o pay for it and continue using it. After that, it’s just $14.95 a month and you can cancel anytime.
Compared just to the interest savings that a typical member sees - it’s quite a bargain.
To learn more about DebtGoal or check out their free trial, click here.