Most Americans would give up social media to erase credit card debt 

Personal Finance


There are ways to pay off your card debt that don’t include giving up something you love.

1. Look for money in your home

If you own a home, you might consider tapping your equity, which likely comes with a lower interest rate than your credit card. Thanks to the new tax law, however, the interest you pay on that loan typically isn’t deductible unless it’s used toward qualified home improvement expenses, according to the Internal Revenue Service.

“Millions of American homeowners are sitting on a hidden source of wealth – their home,” said Kevin Dahlstrom, chief marketing officer at Mr. Cooper. “As consumer debt continues to reach all-time highs, tappable home equity is also at its highest level on record.”

2. Follow a strategic payment plan

Two popular methods for paying off debt are the “debt avalanche” or “debt snowball.” The avalanche prioritizes paying off the highest interest loan first, while the snowball says to pay off the smallest debt first. Find a plan that works for you and stick to it.

3. Negotiate your rate

In some cases, you can negotiate for a lower interest rate. In addition, you can also consider consolidating your debt either with a personal loan or a low-rate transfer.

4. Pick up a side hustle

Having a second job could bring in enough extra cash to make a huge dent in monthly bills. The average person with a side hustle made $686 per month, according to a recent study by Bankrate.com.

5. Actively stick to a budget

Over half of the respondents of the Mr.Cooper survey said that even though they had debt, they did not have a budget. To eliminate debt, it’s important to have a basic financial plan in place, and the first step is looking at your expenses to determine where you could cut back.

“Focus on what behaviors brought you to this situation and what steps you can take to eliminate the stress and debt going forward,” said Harris.

More from Personal Finance

Learning these in-demand skills could add thousands of dollars to your annual salary

Here’s where you can retire nicely on just $30,000 a year

These monthly banking fees could ruin your budget



Source link

Articles You May Like

Morgan Stanley raises its price target on WWE
How to avoid overshopping on the longest Amazon Prime Day yet
How Citi, JPMorgan, Wells Fargo could move on earnings this week
Downgrades FedEx on trade risk, upgrades UPS on domestic delivery
Amazon just hit a new high, and one trader sees more to come

Leave a Reply

Your email address will not be published. Required fields are marked *