Are you considering Old Dominion Associates to help erase your debt?
That may not be the best way to help you erase your debt. You may have received a direct mail offer from Old Dominion Associates, Harrison Funding, Johnson Funding, Safe Path Advisors, Silvertail Associates, Malloy Lending, Credit9, Americor Funding, which have been flooding the market with unrealistically low-interest rate offers that promise a bit more than they can actually deliver. Best 2021 Reviews has been following Old Dominion Associates and its affiliated websites for some time. The unrealistic interest offered to consumers with less than perfect credit is simply ridiculous.
Accumulating debt can cause various financial problems for you if you’re not careful. While it may seem difficult to get rid of debt, the process can be a lot easier if you make smart decisions at the right time. Here are 8 steps you can take to help you erase your debt and start over.
1. Increase Your Monthly Payments
One important way to erase your debt fast is to increase the total amount of money you pay in your monthly payments. If you pay more money in your monthly payments, you’ll reduce your total debt faster. Therefore, don’t stick with the minimum monthly payment amount. Increase your monthly payment as much you can afford to.
To sustain a greater monthly payment, you can reduce your expenditure on non-essential activities and products. Therefore, to save money, you can give up a vacation or two, avoid upgrading your existing tech if there isn’t a need, or eat out less frequently. Small sacrifices can go a long way to help you erase your debt and start fresh.
2. Create a Personal Expenditure Plan to Help You Erase Your Debt
If you were to increase your monthly payments, reducing your personal expenditure can prove difficult if you don’t have a plan. Therefore, it’s important to create a personal expenditure plan that’ll guide you on how much you can afford to spend each month.
There are two major types of spending that you should consider when creating your spending plan: fixed spending and variable spending. Fixed spending is the same each month. Examples of fixed spending include utility bills, grocery bills, mortgage/rent payments and insurance payments.
Variable spending, on the other hand, is not the same every month. Examples of this type of spending include repair costs, purchasing new furniture or other materials for the house, and more. With an effective personal expenditure plan, you can monitor your spending, which, in turn, can help you erase your debt.
3. Refinance Your Debt to Help You Erase Your Debt
You can also consider refinancing your debt to get rid of it faster. You must speak to your lender to try and negotiate a lower interest rate. A lower interest rate means that the total debt amount will be reduced. As a result, you’ll be able to pay off your debt in fewer months.
Your credit score can greatly affect the interest rates you qualify for when you take out a loan. So, a good time to refinance your loan is if your credit score has improved since the time you applied for it. In addition to that, you can also consider refinancing your loan if you’ve paid off your other debts. In both cases, you will be less of a risk to your lender. Thus, this may help you qualify for better interest rates.
4. Beware of Debt Consolidation Scams
Beware of debt consolidation scams that offer an unrealistic low-interest rate on credit card consolidation. It is a widespread industry problem and it is the ugly secret of the debt consolidation industry.
5. Focus on Paying Off One Debt at a Time
You must consider increasing the monthly payment significantly for one debt at a time to help you erase your debt. This may be more beneficial than increasing the monthly payments for all your existing debts by a small amount. Choosing the latter option will only decrease your debt by a small amount every month. Therefore, you must focus on paying off one debt at a time while paying off the minimum on the rest of your accounts. Once the first debt is completely paid off, move on to the next, and repeat this process. Consider the debt avalanche process.
6. Don’t Create More Debt
In order to effectively get rid of debt, you must not create more debt than you already have. Therefore, if you have a habit of overspending, you can consider ceasing credit card utilization for some time. This will prevent you from spending money when tempted, which will help you erase your debt faster in the process. Consider credit card hardship vs debt consolidation.
7. Settle Your Debt
If you’re unable to pay off the debt amount in the agreed-upon loan term, you can consider debt settlement to help you erase your debt. Debt settlement is a process in which you negotiate with your creditors to satisfy your accounts by paying off a portion of the debt. This option is only feasible if your accounts are charged off or are in collections. You may also need to have cash-on-hand to make this payment.
8. Create an Emergency Fund
Creating an emergency fund may not help you erase your debt, but it can reduce the chances of increasing your debt. If you’re low on funds in the future, you can rely on this fund instead of using your credit card for your expenses. This way, you won’t have any major setbacks with paying off your existing debt.
9. Consider Consolidating Your Debt
Debt consolidation is a process in which you combine multiple debts into a single payment each month. One major advantage of this process is that you can qualify for lower interest rates. Thus, this can be an effective way to get out of debt faster. There is never really a good way to get out of debt without paying.
10. Last Few Words
There are many ways to erase your debt, so make sure you consider an option that works best for you. Once you pay off your debt, be sure to stick to healthy financial habits.
Renotoo has been a part of the journey ever since Xtrapoint started. As a strong learner and passionate writer, she contributes her editing skills for the news agency. She also jots down intellectual pieces from health category.