Debt Reduction Ideas

Debt Reduction Ideas

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By Bromwich+Smith Staff | 454 words | Reading Time: 2 minutes and 16 Seconds | Date: 2022/04/07

Having trouble managing your debts? You’re not alone. Many people face financial struggles at various points in their lives. Whether it is a personal crisis due to illness, divorce, the loss of a job, or overspending, it can seem overwhelming. 

So we’re here to share tips with you that will guide you through whatever level of financial challenges you are facing. 

Ways to reduce your debt:

1.  Develop a budget to track your expenses

By tracking your expenses you can monitor how much you’re earning and spending. Being more aware of your income and expenses can help you to eliminate or reduce unnecessary costs.

2.  Don't take on more debt

Work toward paying down what you currently owe before adding any new debt. Avoid any unnecessary purchases. Adding more debt when you still have debt to repay will make managing your debt more challenging.

3.  Pay your bills in full and on time

Paying your bills in full and on time will allow you to avoid high interest rates and late fees. If you're unable to make full payments, aim to pay more than the minimum due to avoid paying more in interest and fees.

4.  Check your bills carefully

When you receive your bills and statements, make sure they are accurate and your rates remain the same. If there are errors or your rates increased without any explanation, call your lender to fix accordingly.

5.  Pay off your high-interest debts first

If you have multiple bills to pay, paying off the debts with the highest interest rates and fees first will reduce the amount of money you owe over time. 

6.  Reduce the number of credit cards you have

Consider having only a few credit cards to manage your debt. Make sure they have the lowest rate available.

7.  Contact your creditors about repayment plans

Speak directly to the creditors you owe money to. They may be willing to set up a repayment schedule that is more realistic for your budget and reduce monthly payments.

8.  Listen to financial experts

You can start by accessing our resource page. 

9.  Stay vigilant

Once you've reduced or paid off your balances, remember to guard against incurring debt.  Consider phasing out credit cards and using debit cards or cash instead.

It’s important to note that even with the best intentions there are still things that can happen to you making budgeting or money planning difficult.  If you are facing overwhelming debt, remember that you are not alone. Bromwich+Smith has a number of debt relief strategies to help you regain control of your finances and get your life back on track. Reach out today for a free, confidential, no obligation consultation. Bromwich+Smith’s Debt Relief Specialists are available by phone at 1.855.884.9243, or request a call back at contact us page. 

 

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