Six Ways You Can Effectively Get Out of Debt in 2015

We have many articles related to getting out of debt on this website, but I thought I would try a different approach with this one, by pretty much summing up the content from some of our other get out of debt topics into one handy checklist. Consider this a get out of debt checklist. Following this checklist in its entirety should help you by leaps and bounds towards getting out of debt.’

Credit Card Debt Escape Tactics

Call your credit card company and ask for lower rates
More often than not this works. Simply call your credit card company and tell them you are having difficulty paying off your balance, and why. Tell them you are at risk of default. This is more likely to happen if you have excellent or good credit, but even poor credit might qualify if you really present your case well. If they deny you, ask to speak to a supervisor. They will notate the call fully, so if they still say no you can try again a month later. It also helps if you have been a month or two late, but this can lower your credit score.

Balance Transfer
This works if you have excellent credit to good credit. How it works is you need to first find a credit card offering a zero percent introductory offer for new balance transfers. There will be a balance transfer fee involved here, but it should be no higher than 3 percent, if it is any higher you should avoid that offer. The key here is that you will need to pay off the balance in its entirety before the end of the introductory period, or else you face interest on the entire balance transfer amount from day one. Only use this method if you are sure that you can pay it off entirely by the end of the intro period. Intro periods range from 6 months to as high as 21 months on some offers. There are some rare 24 month introductory offers, but these are very rare and far and few between.


Fix Your Housing Debt:

Talk to a Certified Financial Planner
Financial planners are not just for the rich, famous and independently wealthy anymore. If you have mortgage debt that is bringing you under water, you should consider consulting a certified financial planner as soon as possible. It is their job to look at your finances and offer you insight into all of your available options. Many a home has been saved due to the skills of a smart financial planner. You can find a financial planner that offers their services on a flat fee basis.

Refinance
Now more than ever is the time to refinance your home. While it is true that mortgage rates climbed slightly this month, mortgage and refinance rates are still at all time lows. Successfully refinancing your home will lower your monthly payments and offer you the breathing room you need to move past your debt hurdles. For some it merely allows one to buy time. If you currently have an ARM or adjustable rate mortgage, this makes even more sense to do, since you can refinance at a stable, lower fixed rate.


Loan Debts

If you are bogged down with more than one loan, there is an option you should consider. Many people consolidate all of their loans into one lower interest loan. This will help to make monthly payments more financially feasible, as well as to reduce the number of separate payments into just one account.


Not Enough Money to Pay Back Debts

Most people just think they do not have enough money to repay their debts. Yet once a detailed spreadsheet is written up detailing where their money is going, it is often quite apparent they have the money to repay their debts but are choosing not to. We waste and squander away money every day. All the little charges we make on our debit cards quickly add up, before you know it there is $400, $500 or $600 per month in little charges for things we do not need. Draw up a budget and stick with it, and you just might be surprised at the results.