6 Top Tips For Clearing Debt
With a New Year upon us, many people will be looking for ways to ensure that their finances are in as good a shape as possible. The festive period can be quite expensive for people when it comes to buying presents and creating the right atmosphere, which means that January can be a tight month with respect to money. If you feel as though you spent too much money over the Christmas period, you should be looking at ways to take control of your finances.
If you want to make a good start with your finances in the New Year, here are six top tips that you should seriously consider.
- If you can, transfer over to a 0% balance transfer credit card
- Reject credit card APR increases
- Join up with a credit union
- Look to improve your credit rating
- Don’t just pay the minimum amount on your credit card balance
- Consolidate your debt
Not all of the tips are applicable or suitable for everyone. If you have financial concerns or issues, it may be that you are unable to find a credit card deal that is suitable or attractive for you. This can be a concern, but if this avenue is not available to you, there are plenty of other ways in which you can make improvements to your current status and improve your finances.
If you already owe money on your credit card and the credit card company informs you that they are looking to push up your interest rate, don’t accept this. You have a period of 60 days where you can contact the company and tell them that you are rejecting their increase. This will mean that you can no longer use the card for additional spending, but you will be able to repay what you already owe at the current rate, which is much better for you.
A credit union may help you out
If you have the funds available to put into a credit union, you’ll find that you’ll be able to obtain a loan at a much more affordable rate. There is a great deal to be said for choosing this option as you will also find that credit unions will not charge set-up fees, see you having to pay administration costs or even impose early redemption fees. This solution isn’t for everyone, but you should at least consider a credit union account as an option and their loan could be the financial support you need to move forward with respect to your finances.
In thinking about long-term improvements to your finances, there is a great deal to be said for improving your credit score. This may be easier said than done at times, but there are many ways in which you can have a positive impact on your credit rating.
Clear more than just the minimum payment
One way to improve your credit rating is to pay more than just the minimum expected payment from your credit card balance every month. You may think that this is unfair because at least you are making payments to the card on time and for at least the stipulated amount, but when reviewing your finances, many companies will see this as a warning sign about your finances. If all you can afford to spare on a monthly basis is the minimum payment level, you’ll find that your credit card score will not improve. This means that you should be looking to clear off more than the minimum level on a monthly basis. This means that you should be looking to reschedule your debt in a more effective manner if you possibly can.
There is also a great deal to be said for consolidating your debts. One way in which you can do this is by obtaining a guarantor loan. Guarantor loans are available to people with bad credit and if the APR is lower than the APR you have for your existing loans and credit cards, you’ll find that this will give you a chance to impact on your finances.
If you have decided that 2016 is the year to take control of your finances, these 6 tips will provide you with some ideal starting point to move forward. If you want to enjoy the New Year as much as you possibly can, take control of your money.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years, but has been writing for as long as he can care to remember. When Andrew isn’t sitting behind a laptop or researching a story, he will be found watching a gig or a game of football.