If you’re going into the new year with debt, now's the time to do something about it
Financial stability and responsibility rank on the top of new year’s resolutions. If you’re going into the new year with burdensome credit debt, student loans, multiple loan payments, or outstanding holiday expenses, there’s never been a better time to prioritize financial stability and take control.
To make your financial new year’s goals a reality you need the right tools. The good news is that with more loan and debt consolidation options than ever, you’re just a few clicks away from turning your debt around.
Here are our four expert tips that will empower you to achieve your financial goals in 2019:
1. It’s time to consolidate your debt
What: Debt consolidation is a relief program that enables you to pay one monthly payment to a company which then forwards your payment on to your different creditors.
Why: Because the process usually secures an overall lower interest rate than what you’re currently paying on multiple loans, saving you money. Think of it as much-needed simplification of your entire debt situation. When debt is concerned, simple is good. If you’re managing many different types of debts going into the new year, your first step in 2019 needs to be consolidation.
How: Online loan marketplaces, such as LendingTree, allows you to fill out one application and receive multiple, competitive consolidation offers tailored to your financial situation.
2. Know Your Personal Loans Options
What: Once you’ve consolidated your debt, a personal loan is a great way to pay it off.
Why: Because, in addition to paying off your debts, which is always good, there are numerous unsecured personal loans available. This means you don’t have to put up any collateral. Also, personal loans typically offer lower interest rates than credit cards and they have fixed repayment terms that range between 36-84 months. This means you’re not sitting on a never-ending pile of debt; rather, you know you’re working with a realistic time frame.
How: Online networks, such as AmOne, are ideal for people looking for personal loans at low rates. They quickly match you with the best rates in a matter of minutes. AmOne is a leader in the industry and will enable you to search through numerous unsecured loan offers based on your credit and specific needs without the hassle of dealing with a bank.
3. Payments, payments
What: The biggest mistake people in debt make is missing payments. A few missed payments after higher-than-usual holiday spending can easily snowball and wreak financial havoc.
Why: When you don’t make credit card/loan payments on time, you’re charged late fees, which just add to your debt. Plus, making payments on time is crucial for maintaining good credit; the higher your credit score, the better the interest rates you’re likely to get on any loan you take out and the more financial options you’ll have in throughout the year.
How: Even if just making the minimum, your most important new year’s resolution needs to be making every single payment
4. SAVE, no matter how much you’re in debt
What: Being in debt is never a reason not to save. Even if you owe far more than your assets are worth, you always need to make sure that you’re saving each month.
Why: The vast majority of Americans have some kind of debt. Having debt doesn’t mean you’re a slave to the debt. While successfully managing and paying of your debt is of the utmost importance, your personal savings, no matter how small, isn’t a price you should ever pay.
How: Save at least 10% of your monthly income every month. If you have a 401(k), you should should definitely be contributing the minimum, and if your company has a matching program, you should do your utmost to contribute as much as your company is willing to match.
Key takeaways: New year, new you. The new year is the ideal time to get your debt under control and start working your way towards financial stability. Use these 4 expert tips to make the right decisions for you and your family.
Searching for the best personal loans to consolidate credit card debt? Compare the industry leaders here.